Meridian welcomes Electricity Price Review Panels PPD stance

Published: Wed 20 Feb 2019 11:06 AM
20 February 2019
This morning the Electricity Price Review released its Options Paper outlining its preliminary views.
On the whole Meridian feels the recommendations are balanced and well-considered.
Meridian Chief Executive Neal Barclay says, “While we’re still reviewing the paper and there will inevitably be things we don’t agree with, we are very pleased with their recommendation to prohibit prompt payment discounts or PPDs.”
“In October last year Meridian made the decision to replace prompt payment discounts with a fairer pricing structure. We believe this change has materially helped those customers who struggle to pay their bills on time as they no longer lose their discount as a result”.
Meridian has been the only major energy retailer to end prompt payment discounts.
Neal Barclay says the decision is about making Meridian’s pricing fairer. The move has cost Meridian $5 million, which will not be recovered elsewhere in customers’ bills.
“If other retailers followed suit, New Zealand consumers could see savings of about $45 million a year. That is a significant amount of money going back into the pockets of those people who struggle to keep their homes warm and dry during the winter months,” says Barclay.
Meridian is also pleased to see the Panel does not favour retail price caps and does not favour prohibiting vertically integrated companies.
“We have always believed that neither of those steps would ultimately provide any benefit to consumers. We are also glad to see that phase out of the low user regulations is favoured,” says Barclay.
Meridian are still reviewing the paper and will engage during the consultation period.

Next in Business, Science, and Tech

Members “blind-sided” by Sanford job cuts proposal
By: E tu
GDP growth steady at 0.6 percent
By: Statistics New Zealand
Gordon Campbell on our Wild West banking culture, and Iran
By: Gordon Campbell
Community leader hopes Facebook currency will help transfers
Chevron, Equinor depart NZ exploration scene
By: BusinessDesk
Slowing economy shows the Govt has no plan
By: New Zealand National Party
Hisco ANZ departure becomes permanent amid expense concerns
By: BusinessDesk
ANZ boss departs under cloud
Last oil giant isolated after majors pull out
By: Greenpeace New Zealand
Maritime NZ confirms Oil Pollution Levy for 2019-22
By: Maritime New Zealand
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media