Genesis Energy warns customers that additional price hikes can’t be ruled out this year.
Customers have been informed that their electricity prices will rise at the end of March.
The company has also just announced a substantial profit surge. Its half-year net profit for the period ending December 31 reached $95 million, up from $70 million the year before.
Chief executive Malcolm Johns explained that higher nationwide hydro-generation enabled cheaper wholesale electricity purchases, redirected gas to industrial clients, and cut back on costly coal and gas generation at Huntly.
This led to the company achieving record operating earnings.
In a conversation with NewstalkZB, Johns said there are no price increase plans “in the immediate future,” yet customers received letters as recently as Saturday notifying them of exactly that.
Genesis Energy’s chief revenue officer, Stephen England-Hall, said price changes are set for the end of March, but Johns was referring to increases “beyond what is already in circulation.”
While Johns assured no further hikes, England-Hall said he couldn’t rule out additional price increases in 2026.
Most customers will face bill increases of 10 to 20%, while some could see hikes up to 30%.
England-Hall said “no one was very happy or thrilled” about the price hikes, blaming inflation—which was beyond the company’s control.
“Over the last few years we’ve had price increases that we’ve tried to hold.
“Since 2021, which some of us will try to forget, from 2021 until today, price increases have tried to be managed relatively efficiently and effectively; we’ve tried to not pass through full inflation costs to customers because we know that things have been challenging.”
England-Hall believes Genesis offers fair market pricing, with data placing it squarely in the middle—some competitors are cheaper, others pricier.