The collapse of a security company marketed by Mercury Energy has left one alarm installer claiming that the power company is running from its obligations to contractors.
Jerry Wierda of Mangere Bridge says he is $11,000 out of pocket after the collapse of Ironzone Security Systems.
A contractorwho installed alarms for Ironzone on the North Shore, Carl Jackson, says he is owed more than $20,000.
Mercury Energy offered a cheap security system to customers between November 1 and January 31 after negotiating a $34.95-a-month deal with Ironzone. The offer included alarm installation and a monitoring service.
Ironzone has since been put into voluntary liquidation, with most of the 1500 customers still waiting for alarms to be installed and contractors waiting to be paid.
Another company, Gower Management Group, has taken over Ironzone and assured customers their alarms will be installed soon.
But Mr Wierda said he let Ironzone run up unpaid bills for work solely because of Mercury's involvement in the scheme.
"Our credit cards are at the maximum. I have a real headache getting the money together to pay the mortgage, the power bills and telephone bills," he said. "It's going to take us three or four months to sort out the mess.
"They told us, 'We are tied in with Mercury - have you ever seen a power company go broke?'
"I am astounded that Mercury puts no value on their name. Ultimately they have branded it with the Mercury name and now they are saying, 'No - nothing to do with us'."
Mercury marketing and sales manager Angela Armstrong said the power firm now had no relationship with Ironzone.
"We weren't endorsing them to their contractors. It is up to them, before they enter any business relationship, to do their own checking.
"We did our own checking from this end, but we were very much only looking at it as a marketing relationship."
Angela Armstrong said Mercury thoroughly investigated all suppliers before committing to promotional opportunities and Ironzone was no exception.
"I'm not sure what is happening with what was Ironzone and the contractors. I'm just not getting into that."
Everyone who had signed up for the deal would get his or her alarm installed. The promotion had been "phenomenally successful" and had not tarnished the name of Mercury.
