GENERAL: CEN: Contact average ETS price rise 3.2 per cent

30 Jun 2010 2:58 pm

CEN 30/06/2010 GENERAL

REL: 1458 HRS Contact Energy Limited

GENERAL: CEN: Contact average ETS price rise 3.2 per cent

30 June 2010

Contact average ETS price rise 3.2 per cent

Contact Energy confirmed today, following media enquiries, that its pricing structure in relation to the Emissions Trading Scheme will see average residential electricity prices rise by 3.2 percent.

Responding to suggestions in the media over recent days that percentage price rises as a result of the ETS may be in to double figures, the company said that in its case, the average price increase will be very much in line with the Government's estimate of ETS adding 5 per cent to the cost of electricity.

"We have been absolutely clear in our communications with customers about price increases. Part of that clarity has been to ensure that we differentiate between a price increase as a result of ETS, and other price moves we may be making as part of normal operations," said Managing Director, David Baldwin.

"It is important that people do not confuse general price moves as a result of normal retail operations, with the ETS price increase, even if in some instances both price movements may be occurring at the same time.

"We reject any implication that we are using the ETS as a cover for inflating prices. We are not," Mr Baldwin said.

Media enquiries:

Louise Griffin 021 243 1442 End CA:00196735 For:CEN Type:GENERAL Time:2010-06-30:14:58:27

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