28 Aug 2012

Genesis to raise power prices

7:27 am on 28 August 2012

Genesis Energy says it will raise the electricity prices paid by consumers in the next year as part of a plan to boost its profits further.

The energy retailer says its priority is to improve retail margins and at least maintain market share despite cut-throat competition for customers.

Genesis reported on Monday that its annual profit had risen to more than $90 million, after a loss of $17 million last year.

Revenue rose by a quarter to nearly $2.3 billion, while earnings rose by one third.

Despite the intense competition and volatile wholesale electricity market, Genesis says its strong performance is partly driven by its diversity in fuel sources and their locations around the country.

Chief executive Albert Brantley says the company aims to make a bigger profit next year by raising tariffs.

While other power companies are eyeing opportunities overseas, Genesis says will stay focussed on New Zealand, for now. The former state-owned company is controlled by Origin Energy of Australia.

Mr Brantley said the company still plans to put one of the six Huntly power station units into storage in November.

But mothballing a second unit in December 2014 could be delayed depending on demand, though it would cost millions to keep it running.