TrustPower expects big boost in move north

TAURANGA - Listed TrustPower is confident its foray into the Northland market will lift the company's business 5 per cent.

The aggressive Tauranga-based electricity generator and retailer, which will be undercutting main competitor Meridian Energy, expects to sign up to 10,000 customers within a month.

The company has been operating in Whangarei since before Christmas and has already signed up several hundred businesses. Its big customer in the region is the Northland Dairy Company, which is also sending an offer to all its members - some 2000 farmers.

Meridian took over Northpower's retailing division and its 40,000 customers last April following the National Government's electricity industry reforms.

TrustPower spokesman Graeme Purches said the company had been eyeing Northland but a move north had not been viable as margins had been too tight.

"When Meridian put the price up it gave us the opportunity to compete."

Meridian lifted domestic power prices 13 per cent and commercial prices 6 per cent this month amid much customer anger.

In 12 months TrustPower has increased its customer base from 98,000 to 220,000 and extended its coverage as far south as Otago.

TrustPower's shares were steady at 410c yesterday.

- NZPA