Electricity generator and retailer, King Country Energy, today announced from 8 October 2009 it will increase electricity retail prices by 4% for its domestic, farming and commercial customers throughout its traditional trading area, of Mokau, Mangakino, Te Kuiti, Otorohanga, Ohakune, Taumarunui, National Park, and Turangi.
The 4% price rise will result in an average domestic customer using 8000 units of electricity per year paying $3.80 more each month for electricity, while an average farming or commercial customer using 15,000 units of electricity per year will pay $7.20 more per month.
Customers will see a change from the first invoice they receive after 8 October 2009.
Acting General Manager, Chris Fincham, says rising hedge prices have forced the retailer to adjust its tariff rates.
“King Country Energy requires approximately 265 GWh of electricity per year to supply its current customer base. However we only generate around 127 GWh. King Country Energy must purchase the balance of electricity required to service our customers from the spot market.
“The electricity spot market is volatile so all electricity purchased has a significant impact on the cost to supply our customers. To mitigate this risk, King Country Energy buys hedges from the big power generators and these hedge prices have continued to rise to the point that we must now pass these costs onto our customers,” explains Mr Fincham.
King Country Energy retails electricity throughout the King Country, and Waikato regions to some 21,000 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 in the Manawatu region.