TrustPower backs down over huge bill

TrustPower's failure to give a Wellington secondary school sufficient notice of an electricity price rise has lead to accusations of a breach of contract.

Tawa College Principal Bruce Murray said TrustPower only notified the school four days before a shift to more expensive spot price rates, while he believes the company was obliged to give two months' notice.

He said the "huge" July bill of $10,416 (up $6000 from June) was surprising, especially considering the college had been cutting back on power use wherever possible.

Tawa College's contract with TrustPower ended in June, opening the way for the supplier to charge higher spot price rates.

Mr Murray said the school had now arranged a contract with Genesis "as we weren't going to keep paying those prices".

TrustPower energy sales manager Chris O'Hara disagrees there was a breach of contract, saying it was simply an "oversight".

"The problem came about because the notice period of 30 days wasn't given to them. They did get one, but not in a timely manner," he says.

Mr O'Hara said following negotiations TrustPower decided to charge the school at the previous rate, "as we realised schools were having a difficult time".

This means Tawa College is now faced with an account for $3964, about what they expected and less than half the amount originally charged.

- INDEPENDENT HERALD