Mercury Energy is warning residential customers are set for a near 10 percent rise in electricity bills this year, blaming it on a host of factors including higher lines charges and energy costs.
It comes after the company revealed $418 million in half-year underlying profit, down four percent from a year ago, which Mercury put down to lower renewable generation and higher costs.
It also slumped to a bottom line loss due to changes in the value of unhedged contracts.
Mercury said from April, its residential customers faced an average 9.7 percent increase in their overall electricity bill, largely reflecting higher lines and transmission charges, and investment in infrastructure.
A rise in the cost of wholesale electricity was also a factor, it said.
“While ensuring resilient, safe, and secure electricity is paramount, we recognise that the impacts will be felt to varying degrees with our customers,” chief executive Stew Hamilton said.
“We are committed to directing our support to those who need it most,” he said.
Mercury chair Scott St John said the half-year period, which also saw it slump to a bottom-line loss, was marked by significant challenges, including inflation and cost of living.
It said hydro inflows were low in the North Island, but Lake Taupō was above normal levels by the end of 2024, which Mercury said was due to it rebuilding storage ahead of winter 2025.
Wind generation was also down due to lower than average wind, and maintenance outages led to lower geothermal generation.
Operating expenses were $16 million higher than the prior period, as the company invested in generation maintenance.
