Contact changes rate for electricity generation customers

31 October 2014

Contact changes buy back rate for new distributed electricity generation customers

From 1 November 2014, Contact is changing the rate paid to all new distributed generation customers for excess electricity they generate and sell back to the electricity grid to 8c/kWh excluding GST.

Distributed generation is a term that describes small scale electricity generation that is installed by consumers close to their source of energy use, which in home use within New Zealand is typically wind or solar generation. Consumers then use the electricity they generate to power their home or business, purchasing any additional electricity required from the electricity grid via their energy retailer and also selling any excess electricity generated back to their energy retailer.

“Our new distributed generation electricity buy back rate signals Contact’s desire not to favour one particular renewable electricity form over another and is in line with the cost of purchasing new forms of renewable energy,” says Contact Chief Executive, Dennis Barnes.

“Contact is a huge supporter of renewable generation - last financial year almost 70% of our total electricity generation came from our five geothermal power stations and two hydro power stations.

“We also hold consents to build further geothermal generation which we will explore in years ahead when market conditions signal the need for new or replacement generation capacity.”

Contact’s new distributed generation electricity buy back rate change is the first in over five years and is competitive with other energy retailers’ rates, which are from 3.5c/kWh and upwards.

The price change only applies to new distributed electricity generation customers, although buy back rates for all distributed customers are subject to change with 30 days’ notice as per Contacts terms and conditions of supply.

ENDS

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