KEY POINTS:
State-owned power companies have declared a combined surplus of $500 million for the latest financial year following years of power price rises.
Meridian, Mighty River Power and Genesis, with national electricity grid operator Transpower, all recorded healthy surpluses when they tabled their annual reports in Parliament yesterday. This
followed data showing that electricity prices for residential users rose 28.2 per cent between 2000 and 2006, while commercial prices rose only 2.8 per cent.
Meridian Energy, New Zealand's biggest electricity generator, said full-year profit fell 77 per cent from a year earlier when earnings were boosted by the $627m sale of Southern Hydro. Net income fell to $199.8 million in the year ended June 30, from $856.8 million a year earlier.
The net surplus from continuing operations was down 18 per cent to $199.8 million from $243.1 million the year before. Ebitda was down $4 million on last year to $479.4 million.
Meridian said it had benefited from higher hydro lake levels in the South Island, but Genesis reported that its fellow SOE's gain had been its loss.
Genesis said it had a reduced profit - down from $83.7 million in 2006 to $61.3 million this year - because of its higher fuel costs.
Mighty River also reported a $10 million increase in its surplus, to $112 million.
All three SOEs paid back dividends to the Government during the year; Meridian $300 million , Genesis $9.6 million and Mighty River $50 million.
Transpower was not as generous, saying it would pay no dividend on its surplus of $126 million - up from $96.9 million last year.
It said the money was needed for upgrades to the power grid.
All the SOEs reported investment programmes to increase capacity with the growth in demand for electricity showing no signs of slowing.
Mighty River Power said it would invest more than $1 billion to develop some 400MW of new geothermal generation capacity over the next five years.
Mighty River Power chairwoman Carole Durbin said geothermal development was a key plank in its strategy to diversify its energy generation and ensure security of supply.
She said the company was exploring other forms of generation but regarded geothermal as its top development priority, headed by a new $300 million, 90MW plant at Kawerau.
Genesis said it was moving to reduce its reliance on coal-fired generation with new gas turbines and renewable energy projects.
Meridian was also investing in more wind farms and looking at new hydro projects.
Transpower said the North Island grid upgrades would cost more than $700 million.
- Staff reporter and agencies