Company changes increase prices for Contact gas customers

Network and transmission company changes increase prices for Contact gas customers

The price Contact Energy’s piped natural gas customers pay from 1 December 2014 will increase to reflect changing distribution and transmission costs that are outside of Contact’s control. Average bill increases for Contact customers are between 1% and 4.5%, which equates to between approximately $11 and $49 a year.

Like all gas retailers, Contact receives these charges from regulated gas distribution and transmission companies PowerCo, GasNet and Vector, to include in a customer’s monthly bill. The changes involve transmission price increases as well as both increases and decreases to network pricing plans, with rates varying across geographical regions. In passing all these changes through the net result is a price increase for all Contact gas customers.

“We understand gas network and transmission companies have ongoing costs for the operation, maintenance and any upgrades of the gas pipes, however Contact is not making any changes to the energy and service components of customers’ gas bills that are under our control and subject to intense retail competition”, said Dennis Barnes, Contact CEO.

In December 2013 Contact announced that it would not be increasing residential electricity or gas prices prior to review in April 2015, other than to account for changes to network, transmission and metering charges, which are out of Contact’s control but are passed through to customers as part of their bills.

The network and transmission company cost changes relate to piped natural gas, which in New Zealand is only available in regions of the North Island. There are no changes for customers who use bottled gas supply.

ENDS

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