Tuesday, January 25, 2011

Genesis Energy's electricity price rise

The NZ Herald reports that Genesis Energy is increasing it's prices by as much as 20%.

Well.... sort of.

1) If you are one of Genesis Energy's 62,000 customers (which is 9% of Genesis Energy's customer base), your power will be going up 3%.  This sounds like a lines company price rise, which we have blogged about before.

2) There is a sub issue that 850 of these customers (so about 9% of the 9%) were being billed incorrectly.  This lends creditability to the theory that it is a lines company rise.  It looks as this 9% of the 9% were on the incorrect lines company charges, and are thus being increased.

3) It's a little bit unclear as to how much the nigh rate is rising by.  The story doesn't tell us whether the true pre rise rate is 10.37c or whether that was the cheaper rate the 850 customers were on.  Irrespective the 18.56c for night rate is now almost 75% of the average cost for a standard rate.  This deserves another blog post.

But I'll go back to the point we've made, power prices are just going to go up and up and up.  To reduce them you have to take action.  We recommend purchasing Power Panda products, but then we are biased.

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