9 May 2003
TrustPower Limited, Electricity retailer and generator, has chosen to withdraw from the Wellington and Christchurch residential electricity markets.
Deputy Chairman, Dr Bruce Harker said 'The realities of these markets is some retailers continue to sell at unsustainably low prices. This makes it difficult for TrustPower to viably retail in these areas, despite offering class leading retail service.'
Dr Harker said 'TrustPower has to make sensible choices in its retail marketing and is focusing on markets where it is best placed with a strong retail brand presence and marketing economies.'
TrustPower offers a fully competitive retail presence in its core regional markets. Its retail strategy is to ensure its customers receive excellent and continuously improving customer service based on a truly sustainable
competitive and strong regional presence.
In respect to the current energy crisis, Dr Harker added 'The current high wholesale prices have coincided with TrustPower refocusing its retailing business. The strategic driver is the long term availability of wholesale
supply that enables TrustPower to compete with the retail prices set by other vertically integrated companies.'
TrustPower has, in the interests of its customers in Wellington and Christchurch, agreed to work very closely with electricity retailer Empower which is prepared to offer TrustPower's residential customers in Wellington and Christchurch a competitive retail price and participation in the present Empower promotional offers including $50 off their second power bill.
Although TrustPower is advocating Empower's offer, the choice remains for the 32,000 residential customers affected to stay with TrustPower.
Commercial customers in Christchurch and Wellington will not be affected by this decision.
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