Meridian Energy is taking action in the wake of the Government’s energy review although, speaking at the company’s Annual Shareholder Meeting in Wellington this morning, Chief Executive Mike Roan said he anticipated more debate given next year’s general election.
“We expect the scrutiny to continue, however, three independent groups of economists concluded that our market is well structured and performing well, that vertically integrated companies like ours are a positive for customers, and that our market has healthy competition.”
“The review provided the industry with much needed certainty and highlighted the importance of both building new renewable generation and creating more firming capacity to help bring prices down,” said Mike Roan.
“We all want cheaper power, and I know people were hoping the review would provide a quick fix. Anyone who tells you there is one is building false hope. The Commerce Commission has approved increases in network and grid charges for at least another four years. We’ll do everything we can to manage the energy component, but power prices can be expected to rise over this period. That’s a difficult reality because many New Zealanders are doing it tough, so all we can do is find more ways through our retail business to help customers save money on their overall energy bill, and continue to invest in new generation to reduce power prices in the medium and long term.”
And Roan says this means being bold.
“We’re committed to accelerating the development of renewable generation assets and resolving long-term firming requirements. I believe the answer to this lies in more hydro storage, and that by harnessing this natural bounty the electricity sector can help underwrite the economic growth of the nation. I want Meridian to be a driving force behind that.”
“I want us to go back to our roots. Sixty-odd years ago, the Waitaki Power scheme was devised and built in the Mackenzie Basin. We can learn from those that went before and be bold in our thinking.”
“We've recently established a hydro development team to explore new opportunities, and we've received Ministerial approval to have our application for access to Pūkaki contingent storage heard through the Fast-Track process. With the Government’s willingness to take part in equity raisings for new developments, we now have an opportunity to think even bolder, and we will.”