MIghty River freezes prices until 2015
Mighty River Power is freezing its electricity and gas prices till April 2015, but total power bills could still rise because of higher charges by lines companies and for the national grid.
MRP chief executive, Doug Heffernan, says the company would hold customers' energy prices - which make up typically 50 per cent to 60 per cent of household electricity bills - at the same level as set in April 2013. Other parts of the total bill include national grid and power lines company charges.
At the time of the MRP share float earlier this year, the company forecast no increase in effective retail prices in 2014.
That has been confirmed for the company's brands including Mercury Energy, ahead of the announcement of charges from local lines companies and Transpower, expected to be set in the next two months.
"We are now confirming that for our customers there will be no increase in our energy prices for a further 15 months.
However there will likely be changes in customer pricing from 1 April due to variables over which we have no control that we pass through on our bills - such as transmission and distribution charges and any increases in metering costs due to regulatory requirements."
He says the impact on customers' bills of these charges, which are mostly regulated by the Commerce Commission, will be announced as soon as they are known and confirmed by the relevant companies.