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Mercury Energy Tightly Monitoring At Risk Consumers, Says CEO

Contributor:
Newswire
Newswire

Wellington, March 26 NZPA - Mercury Energy is doing all it can to ensure customers don't find themselves in the same situation as the Muliaga family did two years ago, parent company Mighty River Power (MRP) says.

Folole Muliaga died in Auckland in May 2007 after a Mercury Energy contractor cut power at her Mangere home due to an overdue bill, turning off the mains-powered oxygen machine which helped her breathe.

The company was publicly slated at the time, and admitted it had not followed guidelines relating to obligations to at risk customers.

MRP executives were questioned at a financial review in Parliament today on initiatives relating to dealings with consumers considered vulnerable.

Chief executive Doug Heffernan said Mercury constantly monitored those struggling financially.

The number of customers officially recognised as being medically vulnerable had also sky-rocketed since Mrs Muliaga's death.

MRP chairwoman Carole Durbin said figures for this month showed there were 1520 medically dependent customers and 357 were in the process of providing evidence to show they were in the same category.

The number peaked in February last year, with 2022 being listed, which compared to 61 in May 2007.

"So it's obvious that the campaign to make people aware of that is working," Ms Durbin said.

Electricity Commission guidelines about vulnerable consumers introduced in 2005 were revised following Mrs Muliaga's death and updated last year.

Mr Heffernan said while he was confident Mercury had implemented measures relating to the welfare of consumers, the commission was still working with district health boards on the issue of improving information flows between the health and energy sectors.

An Electricity Commission spokesman told NZPA new guidelines had thrown up issues that still needed ironing out.

Submissions are being sought by the commission on a consultation paper relating to the assistance of vulnerable consumers, with a deadline having been extended from tomorrow to April 1.

Along with a significant increase in people listed with power companies as medically dependent, there had also been a decline in the number of consumer disconnections for non-payment of bills.

On the competitive front, MRP discussed a net, after tax profit in the year to June 2008 of $111 million -- $14m up on the previous year.

Mr Heffernan said Mercury Energy had grown its market share from 280,000 customers in June 2002 to 351,000 in June 2008.

There were no gas customers in 2002, but Mercury now had 39 percent of the greater Auckland market.

MRP's geothermal generation had grown from zero in 2000, to 18 percent of market share.

Mr Heffernan said retail price increases of 4.7 percent were not significant contributor to the profit gain.

They had come from higher thermal and hydro generation, and market share gains in retail.

NZPA PAR co gt

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