New chief says TrustPower prices are reasonable

IN HIS first weeks as the new TrustPower chief executive, Vince Hawksworth is taking the time to understand the make-up and culture of the company by visiting its hydro schemes and meeting staff all around the country.
Five weeks into the job - after having four years in Tasmania - Mr Hawksworth has toured the local Kaimai power scheme, the Tararua Windfarm near Palmerston North, Cobb and the new Wairau project in Nelson and Marlborough, and Coleridge in the Canterbury high country.
"I wanted to get to Oamaru but I was thwarted by the weather," he said. "I'd like to think I can get around all the assets and meet the people within the next three months. It's important to understand what makes TrustPower tick."
TrustPower, the Western Bay's second biggest business behind kiwifruit marketer Zespri International, owns 36 small to medium power stations in Bay of Plenty, Taranaki, West Coast, Nelson/Marlborough, Canterbury and Otago.
There's the windfarm at Tararua and in September TrustPower will be starting the first stage of the Mahinerangi Windfarm near Dunedin.
 TrustPower, the country's fourth largest electricity retailer and fifth biggest generator, prides itself on customer service.
"The staff on the phones, they are the voice of TrustPower," said Mr Hawksworth.
"When people ring and ask questions, we want to resolve their issues first time around.
 "It's how you respond - there's nothing ground-breaking about that - but many business do fail to execute well on this," he said.
Settling into his new position, Mr Hawksworth probably didn't expect to field claims that TrustPower, the retailer, has some of the highest electricity prices in the country. He hardly flinched.
"If you are talking purely on price, then in some areas we would be the most expensive, and in other areas we aren't. What customers have to consider ... is whether the difference in price being offered elsewhere is worth the problem of switching.
"What customers are told about the size of the [price] gap is somewhat different to reality. They find out it could be $50 a year. Their response is: 'I thought it was more than that; it's not worth it [switching].'
"You've got to be careful about headline numbers," said Mr Hawksworth.
"We have the Friends [discount] programme and customers do get the benefit of the Tect cheque - it's all part of the total package. There is a level of service and loyalty that TrustPower shows to the customers and the community by supporting regional awards and local organisations."
Mr Hawksworth said TrustPower's pricing was based on a sustainable business model. "If every time a government-owned power company dropped its prices and TrustPower's follows, then we wouldn't have a sustainable business.
"One thing TrustPower doesn't do is offer really low prices to attract new customers and then later on push up the prices for those customers. Also, we don't do blanket rises; instead we look at the different regions.
"I would only be bothered if I thought there was a view that TrustPower's prices were inappropriately higher - in other words, price gouging, but that's not the case."
Mr Hawksworth said TrustPower was like any other company that wanted to grow to meet increasing demand. If it built a new windfarm or hydro scheme, then it had to consider the cost of investment and the return to shareholders. The issue of pricing was always going to come up.
In its last financial year to the end of March, TrustPower - one of the sharemarket's best performing listed companies - struck a net profit of $119.4 million, an increase of 14 per cent on the previous year.
Its operating revenue fell 3 per cent from $785.4 million to $759.3 million, and it generated 2017GWh of electricity in New Zealand and 373GWh from its Snowtown Windfarm in South Australia.
Mr Hawksworth, 51, was born in North London, obtained a mining engineer's degree from Trent Polytechnic in Nottingham, and first moved to New Zealand in 1993 where he gained a MBA from Waikato University.
He developed his leadership and management skills while working for British Coal Corporation between 1979 and 1993. He spent two to three days a week going underground into the coalmines close to Nottingham.
"I trained on the coal face and had to do what the blokes did, such as driving underground machinery," said Mr Hawksworth.
At the age of 25, he became an underground shift manager.
 "But it was a job I didn't want to do when I was 50. It's hot, dirty, dusty and noisy down there."
He progressed to deputy mining manager.
But in 1993 there were further mine closures and Mr Hawksworth decided to emigrate to New Zealand.
He worked for Huntly Brick Co, Electricity Corporation of New Zealand and Genesis Energy before moving to Hobart in May 2006 as chief executive of state-owned Hydro Tasmania.
 "When I saw the [TrustPower] job become available, I believed it was the best in the New Zealand power sector," said Mr Hawksworth.
"TrustPower is a nimble, flexible type of business. It has clear shareholder direction, great staff and is located in a beautiful part of the world. There are very few places other than the Bay where you would want to live and work.
"I saw the move as ticking all the boxes I could hope for in my next career move," he said.
HAWKSWORTH CV
Age: 51
Born: North London and schooling in Bishop's Stortford.
Qualifications: Mining engineer's degree from Trent Polytechnic in Nottingham; MBA from Waikato University.
Married: To Jane, a former psychiatric nurse and kitchen designer; they have three children, Sophie 20, Joe 18, and Francesca 13. She is at Bethlehem College, and Sophie and Joe remained in Tasmania to study.
Present position: TrustPower chief executive, replacing Keith Tempest who retired.
Past positions: 1979-1993, supervising and managerial jobs at the Nottinghamshire coalfields for British Coal Corporation.
December 1993-September 1995, production manager at Huntly Brick Co.
1995-March 1999: production manager at Huntly Power Station under Electricity Corporation (ECNZ).
1999-mid 2002: general manager generation for Genesis Energy, living in Hamilton..
2002-mid 2006: general manager retail for Genesis Energy, based in Auckland.
2006-early 2010: chief executive of Hydro Tasmania, based in Hobart.;
Interests: Biggest focus outside of work is doing what family wants. I've done a few half marathons and like to run for 35 minutes three times a week. Also enjoy a bit of fishing.