Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Contact on Govt Electricity Policy Announcement

Contact Energy On Government Electricity Policy Announcements

Policy announcements aimed at improving security of supply during dry years received a cautious welcome from Contact Energy Ltd today.

“We welcome the fact that the Government has moved to address a period of uncertainty for the industry, particularly for those such as Contact with investment plans to improve dry year reserve,” said Contact’s managing director, Steve Barrett.

“We are digesting the implications of today’s announcements and there are significant elements of technical detail still to be formalised. For example, the details of how the proposed security mechanism will be implemented will be critical to its success.

“Likewise, the new Electricity Commission will hold powers in reserve to require generators to offer long-term contracts up to a nominated proportion of their reliable capacity, and/or compel retailers and large users to purchase long-term contracts.

“It is very important to understand the checks and balances associated with the use of such powers, as they have the potential to significantly affect the incentives on generators and customers to voluntarily sign long-term contracts, which can underpin investment in new baseload power stations.

“That said, today’s announcements appear to strike a reasonable balance between the need to maintain a competitive electricity sector while dealing with the particular circumstances that New Zealand currently faces.”

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news