KCE gives away $600,000

Ruapehu Bulletin, Volume 13, Issue 626, 5 March 1996, Page 1

KCE gives away $600,000

One of the local power companies chose a novel way to announce a return of profits to its shareholder-customers last week, tying it in with Leap Day. Electricity consumers in the King Country Energy supply region are to receive a discount of nearly a month's electricity charges. Announcing the "Leap Year" discount on Thursday, general manager of King Country Energy, Peter Till, said the discount would appear on customers' bills from 1 March. The discount is approximately six per cent of the customer's total electricity bill for the year ended 31 March 1995. "For most people this will be about one month' s electricity charges, "said Mr Till. "Only a very few large electricity users will not receive the Turn to Page 2

KCE gives away $600,000

FROM PAGE 1 discount since they already receive their electricity at a discounted rate." The discount for large electricity users is individually negotiated but is mainly about 10 percent. Mr Till said the discount was the equivalent of injecting nearly three quarters of a million dollars into the community. "The discount is worth a total of $675,000 to our customers." "The whole community should benefit as our consumers spend their discount money on things other than electricity," he surmised. The discount applies to all commercial, domestic and rural consumers who are charged the standard tariff and comes from the company's profits. "We are a community-owned company through the Trust, and our view is that the community should share in the value of the company."

This is the first special discount the company has paid since deregulation of the electricity supply industry three years ago. Mr Till said the company had the second lowest price for domestic electricity supply in New Zealand. "Our aim, naturally, is to keep our tariffs down for our customers and we will continue to aim to do that." "We must understand however that there is a balance between profitability and low-cost energy." Mr Till said that he expected discounts would continue in the future if the company made sufficient profit and if the money was not needed for major capital works. "Our aim is to work closely with the community in our future development and ensure that the company continues to return value to its customers."