Tekapo hydro stations under new ownership from 1 June

Tekapo hydro stations under new ownership from 1 June

For immediate release
13 May 2011

Meridian Energy has today moved a step closer in the process of selling two of its South Island hydro stations. Meridian is selling Tekapo A and B power stations on the Waitaki Power Scheme to Genesis Energy.

The Government today confirmed that it wants Meridian to proceed with the sale, which is due to take effect from 1 June 2011. The sale is part of a package of Government reforms aimed at improving the electricity sector.

Meridian Chief Executive Tim Lusk acknowledged today the work that Meridian and Genesis Energy have undertaken to reach this milestone. “We look forward to having another generator in the Waitaki region.”

Tekapo A and B are the first two of eight hydro power stations that make up the Waitaki Power Scheme. Meridian will continue to own and operate the remaining six power stations located from Lake Pukaki to Waitaki.

Meridian and Genesis Energy will work to a Water Management Agreement that allows both companies to utilise the water flowing through the interconnected lakes and canals to generate electricity at their stations. This agreement runs to 2025 and provides clear guidelines for operations to ensure the water is managed appropriately, including the management of high or low inflows through the Scheme, and to ensure that water will still be available to other users.

The sale of the power stations was one of a series of changes that the Government announced in December 2009 to improve retail competition in the industry, promote the reliability of electricity supply and improve governance in the sector through the establishment of the Electricity Authority.

ENDS

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