Meridian admits misleading customers

12.20pm

Power giant Meridian Energy Ltd has admitted breaching the Fair Trading Act by misleading customers about the reasons for changes in tariffs.

Under a settlement reached with the Commerce Commission the company is to compensate affected customers and issue a public apology to them and to lines company Network Tasman, the commission said in a statement today.

Meridian had sent a letter to customers in the Network Tasman area in August 2001 which implied tariffs for some customers would rise due to an increase in charges by the lines company.

But Network Tasman had in fact reduced its rates by an average of 5 per cent, the commission said.

The increase was due to the expiry of a special promotional rate which 175 Meridian customers were on.

Commission chairman John Belgrave said: "Meridian Energy not only made a misleading representation to its customers but may well have caused damage to Network Tasman's reputation by inferring that it was responsible for the price increases."

The commission's settlement with Meridian will see the company send a letter of apology to the affected customers, and give them a $30 to $50 rebate.

Meridian will run a public apology notice in the Christchurch Press and Nelson Evening Mail tomorrow.

In April last year, Meridian was fined $12,000 in Invercargill District Court for six breaches of the Fair Trading Act related to a special offer to Comalco employees in December 1999.

- NZPA