Genesis raises North Island gas prices

By CHRIS DANIELS

State-owned power company Genesis Energy is increasing its gas prices by 12.7 per cent for North Island residential customers.

The new prices will be charged to 97,000 customers from January 1, which Genesis says will mean a $71 rise in the average household's annual gas bill.

Chief executive Murray Jackson said the cost of supplying gas had increased, with wholesale prices and the cost of transportation rising.

Genesis recently announced a $61.1 million annual profit and paid the Government a $24.4 million dividend.

It is only eight months since Genesis last lifted its gas prices, with increases of up to 15 per cent.

The cost of energy is expected to increase dramatically for all New Zealanders in the next few years.

Last week Contact Energy chief executive Steve Barrett said power price jumps of up to 20 per cent should be expected, mainly because of the tightening of fuel supplies for thermal power stations with the rundown of the once-massive Maui gasfield.

Though a shortage of gas is causing worries for the big power companies, there is enough available to supply the relatively small demands of residential and small business users for years.

Genesis is using gas from the Maui field before it begins taking supplies from the Kupe field, due to start production in 2006-2007.