King Country Energy CPI price adjustment following 18 month price freeze

Electricity generator and retailer, King Country Energy, today announced from 1 October 2011 it will increase electricity retail prices by 6% for its domestic, farming and commercial customers.

The last general price rise was on 1 April 2010, when the company guaranteed an 18 month price freeze.

King Country Energy CEO, Rob Foster, says ongoing increases in wholesale electricity costs and a rise in CPI (consumer price index) during the price freeze time period now requires the company to pass on these costs.

“At King Country Energy, we realise that times are tough for many of our customers and that is why we initiated our price freeze 18 months ago. However, since that time, CPI has gone up by nearly 6% and wholesale electricity costs continue to increase at an average of 6% per year.

Unfortunately we now have to pass along some of these costs to our customers.
King Country’s Energy’s 6% price rise will result in an average domestic customer using 8,000 units of electricity per year paying $6.50 more each month for electricity. An average farming or commercial customer using 15,000 units of electricity per year will pay approximately $12.00 more per month.

Customers will see a change in their retail prices from the first invoice they receive after 1
October 2011.

King Country Energy retails electricity throughout the King Country and Waikato regions to
approximately 19,000 domestic, commercial and farming properties. It owns four
hydroelectricity power stations at Kuratau, Mokauiti, Piriaka and Wairere. It also owns 50% of the Mangahao station, located in Manawatu, and purchases approximately half of its wholesale electricity from other generators.