Genesis Energy customers are facing electricity price rises at the end of March, despite assurances from the company’s chief executive that further increases were not planned. Some customers have been told to expect bill increases of up to 30 percent.
The conflicting messages emerged after Genesis Energy announced a near-doubling of its half-year profit, reaching $95 million for the period ending December 31st, compared to $70 million the previous year. The increase was attributed to higher hydro-generation and the ability to purchase cheaper electricity on the wholesale market, allowing the company to divert gas supply to industrial customers and reduce reliance on more expensive coal and gas-fired generation at Huntly.
Chief Executive Malcolm Johns initially stated on Newstalk ZB that there were “no plans in the immediate future” for price increases. However, customers began receiving letters as recently as Saturday, February 22nd, detailing price changes taking effect at the end of March. Stephen England-Hall, Genesis Energy’s chief revenue officer, clarified that Johns was referring to increases beyond those already communicated to customers.
England-Hall conceded he could not guarantee there would be no further price increases in 2026, attributing the current rises to broader inflationary pressures. “Over the last few years we’ve had price increases that we’ve tried to hold,” he said. “Since 2021… 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.”
Despite the price increases, England-Hall maintained that Genesis Energy offers a “fair proposition” to customers, positioning the company as being in the middle of the market in terms of pricing. He acknowledged that some competitors offer cheaper rates, while others are more expensive.
The company’s financial performance comes as the government is preparing to invest up to $200 million in new shares as part of a $400 million capital raise. The move aims to bolster Genesis Energy’s financial position, though details of the investment remain under discussion.
