Electricity, gas firms in cost-cutting accord

By Mark Reynolds

Natural Gas Corporation and former ECNZ unit Genesis Power have cosied up with each other to cut the costs of servicing their 284,000 energy customers.

But the two companies are quick to point out that the service agreement is not part of a wider plan to amalgamate other operations.

"There are no other initiatives planned between the two organisations," said Natural Gas communications manager Keith FitzPatrick.

The agreement should take effect from July 1. It will see Natural Gas run a call centre for the two companies from its Hamilton offices. The Genesis call centre staff will be separated from the Natural Gas staff, but the companies will share assets like computer facilities.

Natural Gas has 129,000 energy customers, including 47,000 gas connections in the North Island and retail electricity customers formerly owned by WEL Energy.

Genesis has about 155,000 electricity customers including consumers previously owned by CentralPower, Powerco and Wairarapa Electricity in the lower North Island.