Simply Energy Helps By-pass Major Retailers
Simply Energy Helps Consumers By-pass Major Electricity Retailers
Wellington, 12 November 2009 – Specialist electricity retailer Simply Energy has signed a retail supply contract with independent generator and energy services company EDC Ltd. EDC will supply electricity to a number of their commercial sites around the North Island combining the power output from three independent generation assets.
Under the agreement, Simply Energy has combined output from the Silverstream landfill generation plant with generation output from the Mangapehi and Matawai hydro generation stations owned by Clearwater Hydro.
Simply energy Director, Murray Dyer, says the contract is an innovative solution that will give EDC security of supply and certainty of pricing throughout the year. “By combining multiple independent generation assets, we can provide EDC with a hedge profile tailored to meet the specific energy demand of the commercial sites they manage. The baseload power output will come from Silverstream. The Mangapehi and Matawai hydro plants’ winter capacity will ensure that there are no supply shocks during the year.
“This supply solution provides price certainty and manages volume risks for EDC in a very cost effective manner. It also returns greater profits to owners of the generation assets by circumventing the major generator/retailers.”
Mike Drummond, General Manager of EDC Ltd, says; “The agreement works really well for us. Combining our Silverstream asset with other independent generation assets provides us with greater options and control over the profile for supply of electricity to our commercial sites.”
Laurence Best, Generation Manager of The Lines Company owned Clearwater Hydro says that the competition and expertise provided by Simply Energy is good for the industry.
“We have a pipeline of new renewable generation projects coming into the market over the next few years,” he said. “Our ability to continue developing these projects is enhanced by Simply Energy being in the market providing innovative generation and supply solutions directly to end consumers.”
Murray Dyer said that, with the Matawai hydro plant coming on stream, this latest agreement means Simply Energy now have eight generation assets that have contracted to them for generation and retail services.