Electricity SOEs 6 monthly reports tabled

Half-yearly reports for Meridian Energy, Genesis Power and Mighty River Power have been tabled today in Parliament by the Minister for State Owned Enterprises Mark Burton.

"Each of the three electricity generators/retailers faced considerable challenges during the second half of 2001," Mark Burton said. "National hydro inflows during winter were the lowest recorded in 70 years and impacted in different ways on all three companies. There was also considerable ownership movement in the retail sector during the period.

"The low lake levels meant that Meridian and MRP generated less electricity, while Genesis' thermal generation plant at Huntly operated at near capacity. Huntly is now undergoing maintenance ahead of the coming winter period."

For the six months to December 2001, MRP recorded a net surplus of $14.0 million, compared to $30.4 million for the same period the year before. Meridian's net surplus was also down, at $29.9 million, compared to $60.0 million for the corresponding period a year earlier. As expected, Genesis recorded an improved performance, with a net surplus for the six month period of $42.7 million, compared to $22.2 million.

"There are other issues from the six month reporting period that should be noted," Mark Burton said.

"Progress was made towards increasing generation capacity to meet New Zealand's growing energy needs. Genesis gained resource consents for a proposed 400MW gas-fired power station at Huntly. Meridian undertook feasibility studies and consultation for Project Aqua during the period and is preparing to apply for a resource consent later this year.

"The companies also strived to meet the government's requirement for SOEs to be 'good corporate citizens'. As an example, Genesis pledged $3.4 million from its energy savings incentive scheme to a Trust which supports cancer treatment in New Zealand," Mark Burton said.