Genesis in drive for SI clients

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North Island power company Genesis Energy has launched a campaign to attract South Island customers.

The state-owned enterprise says its "likely ownership" of two of Meridian Energy's Waitaki River hydro power stations provides a good opportunity to target South Island consumers.

A decision on that proposal, one of several put forward in a review for Energy and Resources Minister Gerry Brownlee to increase competition in the sector, is unlikely for months.

Brownlee's review team recommended the Tekapo A and B power stations, which generate 185 megawatts of power between them, be transferred to Genesis.

Yesterday, Genesis unveiled a deal for Dunedin householders that it said was about $210 a year cheaper than that now provided by Contact Energy, the city's main electricity supplier.

It also promised to hold its prices in Dunedin until at least next February.

Genesis retail general manager retail Dean Carroll said the offer was "a clear demonstration that competition is alive and well in the electricity market".

The company intended to announce pricing deals elsewhere around the South Island, including Christchurch, over the next few months.

"With the likely ownership of two South Island hydro-electric stations ahead of us, Genesis Energy is keen to share the competitive benefits of having a new generator-retailer in the region with South Island consumers," he said.

Dunedin customers who used LPG for heating and cooking would get a free annual rental of an LPG bottle, worth about $100, he said.

Contact spokesman Jonathan Hill said the company was not fazed by Genesis's offer.

"We reckon we provide good value for money. We offer a 40c-per-day discount - which is big - for dual-fuel electricity and LPG customers and we're actively investing in and building power stations," he said.

Meridian spokesman Alan Seay said the Government had signalled it wanted the asset swap to take place. Genesis's campaign was good for competition and consumers, he said.

Genesis spokesman Richard Gordon said: "With regards to the Tekapo arrangement, we have commenced commercial negotiations with Meridian. We don't believe it is premature for us to make a competitive bid for customers in the South Island."

Genesis already has about 8000 South Island customers.

- © Fairfax NZ News