Thursday, 29 April 2004
Media Statement
Increased competition good for electricity consumers
Contact Energy's announcement today that it is expanding its retail operations to offer full national coverage is good
news for electricity consumers, says Energy Minister Pete Hodgson.
"Competition between electricity retailers is an essential check on electricity prices," Mr Hodgson said. "For some time
now I have been urging the major electricity companies to expand their retail areas and compete more vigorously for New
Zealanders' electricity accounts. I am pleased to see Contact expanding its range to become the country's second
nationwide retailer."
Contact's expansion will take it into King Country, Bay of Plenty, Marlborough, Waipa, central and Southern Hawke's Bay,
Wairoa, Buller and Westland, making another choice of power supplier available to an estimated 125,000 households and
businesses.
"In most of these regions competition is currently less than satisfactory," Mr Hodgson said. "In central and southern
Hawke's Bay, where only one electricity company is currently supplying domestic electricity consumers, the arrival of
another retailer is particularly welcome. The other regions Contact is entering currently have two competing retailers,
except for Waipa which has five. My view is that adequate competition requries at least three retailers to be actively
competing for business in a region.
"I urge other electricity retailers to follow Contact and Meridian in competing nationwide. The ability for consumers to
choose between competing retailers puts vital pressure on electricity companies to deliver fair prices and good
service."
ENDS