Mercury Energy customers will see an average increase of 9.7% in their bills starting in April, with warnings that gas and electricity prices may rise “across the board”.
The gentailer said retail prices must increase due to rising lines and transmission charges, along with higher wholesale electricity costs and other expenses.
Increasing costs for materials and labour, higher interest rates, and escalating investments in the electricity network have all contributed to the rise in prices.
Mercury chairperson Scott St. John noted that the first half of the year faced considerable challenges, primarily driven by inflationary pressures and the rising cost of living.
According to St. John, low hydro storage levels and constraints on gas supply have further strained the increasingly intermittent renewable energy supply. This has resulted in increased price volatility, which has affected some industrial consumers lacking fixed-price contracts.
“Discussions to explore market options for the Huntly power station will be one of the important measures we take into the future to help improve security of supply.”
“We’ve seen good progress on our commitment to investing over $1 billion in new renewables, with three renewable projects under construction—enough to power up to 142,000 houses with renewable energy.”
Mercury has also announced an increased payout to shareholders, declaring a half-yearly dividend of 9.6 cents per share for the first half of 2025, which represents a 3% increase compared to the first half of 2024. If the forecasted full-year dividend of 24 cents per share is realised, it will mark the 17th consecutive year of dividend growth for the company.