By CHRIS DANIELS consumer reporter
The country's biggest gas retailer, Contact Energy, says it will soon raise prices to 110,000 customers following an 8 per cent increase in costs.
Company spokesman David Hunt said the price rises were the result of an inflationary increase from the owners of the Maui gasfield and a jump in transmission charges from network company UnitedNetworks.
The two increases, if passed on by Contact to all customers, would mean a rise of at least 8 per cent - or $4 on a monthly gas bill of $50.
All Contact gas is delivered along pipes owned and managed by UnitedNetworks, 75 per cent of which is owned by American company UtiliCorp.
UnitedNetworks yesterday announced a yearly profit of $109 million, up from $96.6 million in 1999.
Spokeswoman Avon Adams said UnitedNetworks had raised its standard charge to domestic gas consumers by 2.5 per cent, and by 2.2 per cent for commercial users.
This price increase, which the company said was the first in more than three years, took effect from last January 1.
Gas from the Maui field is sold to the Crown by Fletcher Energy and ShellTodd.
The amount they are paid for the gas increased 1 per cent in October last year.
The Crown then sells the gas to retailing companies such as Contact Energy.
Contact said this week that it was now paying about 5.8 per cent more for its gas.
Contact set to boost gas price 8 per cent
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