Customers have deserted electricity generator and retailer Contact Energy in droves during the past three months.
Contact Energy, one of the biggest companies on the stock exchange, says a significant number of customers have cancelled their accounts.
The exodus, which represents 3% of its 650,000 customers, adds to the company's woes as it warned on Tuesday that its full-year earnings are likely to plummet. It expects its 2009 after-tax earnings to fall by 20% to 23% compared with 2008.
Contact chief executive David Baldwin says customers left because they objected to the company's move to increase directors' fees in October. The following month it lifted prices for some customers by 10% or more.
Contact says it wants to stem the flow of customers to cheaper suppliers.
In issuing its profit warning, Contact says it is battling extreme hydrological conditions and transmission constraints.
The company says the unexpected removal of an inter-island power cable link has led to problems in transferring electricity between the North Island and South Island.
It says the inter-island link needs to be replaced to avoid further volatility in electricity wholesale prices between the two islands.
Contact Energy's share price dropped almost 71 cents, or 9.6%, to $6.64 on Tuesday morning, but finished the day up 11c to $7.43.
