MEDIA RELEASE
14 MARCH 2001
ON ENERGY ANNOUNCES NEW PRICING STRUCTURES
On energy has today announced wide-ranging changes to its electricity prices, including a low fixed-charge option for
small users. The changes will mean price reductions for more than 80 percent of customers, particularly small to medium
consumers.
The new charges for Auckland, Thames Valley, Wellington and Christchurch will come into effect from 1 April 2001.
Changes for Hamilton will be announced within the next few weeks. The changes incorporate recent prices change
announcements by Transpower and local distribution companies (United Networks and Orion). On energy has also reduced its
charges on a large range of pricing options and absorbed increased distribution charges where possible.
The new prices vary from region to region, depending on local line company charges and existing pricing structures.
Nationwide, 83 per cent of On energy customers will receive reductions on their electricity bills. Savings will be
greatest for low-use customers.
John Barton, Managing Director, said On Energy was passing on all of the savings from Transpower. All the savings from
lines companies were also being passed on. However where lines companies have actually increased charges, On Energy has
reduced its own charges as much as possible. This means many customers still get a reduction and increases are
minimised.
He said: “We promised when we launched the On energy retail brand that we were committed to customer service and
competitive pricing. We have already made significant improvements in service and now we are adding extra value to
customers through these new pricing structures.”
In Christchurch all residential customers have price reductions of a minimum $50 a year. Christchurch business customers
will benefit by similar amounts.
In Wellington, small business customers receive price reductions exceeding $300 a year, while small residential
customers receive more modest annual savings of $25 to $40. Average to large residential customers are either not
affected or receive increases of a few cents through to about $2 a month.
In the Auckland area (Waitemata), low-use residential customers can save more than $130 a year while average residential
customers achieve savings of around $20 to $50 a year. Large users will have increases of about 30 cents a week.
Low-use Thames Valley residents will save about $100 a year with lesser savings for most other customers and no impact
on high users.
On energy is also offering a low fixed-charge tariff in line with the Government’s announcement in September last year.
Mr Barton said that by significantly reducing fixed charges, the new tariff structure gave all electricity consumers a
real incentive to conserve energy.
ENDS