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Genesis Energy Clarifies Wellington Price Changes

Contributor:
Fuseworks Media
Fuseworks Media
Genesis Energy Clarifies Wellington Price Changes

5 DECEMBER 2008 - A Dominion Post article this morning gave the impression that all Genesis Energy residential electricity customers in Wellington are facing a 17% price rise. This is not the case.

The 17% rise quoted in the newspaper applies to a specific Night Only Rate which accounts for only 1.8% of total electricity consumption by Genesis Energy customers in the Wellington region per year. The average rate increase for all customers remains 3% (Classic plan) and 3.3% (Household plan). Genesis Energy continues to offer extremely competitive prices for its customers in Wellington.

It should be noted that the Night Only Rate is the cheapest rate - around 10c per KWh - and impacts a very low level of total consumption and customers. The Wellington Household customer Night Only Rate of $0.0922 per KWh increased to $0.1080 - a 17.1% change.

The higher increase for the night portion of the price change is primarily driven by an increase in the wholesale night cost of energy supply that was received by Genesis Energy in September 2007 but not passed into the November 2007 price change to Wellington customers. Therefore the Night Rate change essentially reflects energy cost increases over the past two years.

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