Power bills set to soar

By RENEE KIRIONA


Dramatic electricity price rises are on the horizon for homes and businesses this year.

Three of the country's four major electricity retailers are anticipating higher-than-usual price increases as a result of rising wholesale electricity costs.

The first increase this year comes from EmPower, a subsidiary of Contact Energy, which will charge about 70,000 of its residential and business customers on the North Shore 14 to 15 per cent more from February 15.

Five days later, Trustpower will raise its prices in Central Otago, where 20,000 residential customers face a 7 per cent increase.

Trustpower spokesman Graeme Purches said other regions the company served were likely to face a similar increase.

Genesis spokesman Vincent Hawksworth said the company had no immediate plans for an increase, but he would not be surprised if it did decide to charge more.

"We still have to review our prices, but there are certainly indications that an increase is on the way," he said.

Wholesale electricity costs, which on average made up about 30 per cent of a power bill, had risen because the industry had to resort to more expensive sources of energy such as non-Maui gas, Mr Hawksworth said.

No one from Mercury Energy was available yesterday to comment on its price plans.

Power points

* Contact Energy: 500,000 customers. Made a profit of $106.9 million last year.

* Trustpower: 240,000 customers. Last year's profit, $39.2 million.

* Genesis: 585,000 customers. Made a profit of $61.1 million last year.