Contact Energy lifts prices 10%, sees '09 mirroring '08

The price rises for Wellington and Dunedin customers are effective from November 1.

Contact said not enough generating plant in the South Island, inadequate transmission lines, including the controversial Cook Strait cable upgrade and insufficient wire between Manawatu and Wellington and a dry autumn and winter were behind the price hike.

In August, Contact -- 51.4 per cent owned by Origin Energy -- reported a $NZ237 million ($A209.7 million) annual profit to June 2008.

At a presentation to investors on Wednesday, the company said it did not expect to "significantly outperform" the 2008 financial year result, The New Zealand Herald reported.

The first quarter had seen "extreme trading conditions" and the company's overall first quarter performance "has been well below expectations".

"As such, the company does not currently expect to outperform its 2008 financial results."