Transpower reported a doubling of full-year profit at the same time as it hit out against regulators, criticising the way it is treated by the new Electricity Commission and the Commerce Commission.
The state-owned enterprise, which owns and manages the national electricity grid, yesterday said full-year net profit was $141.5
million, up from $59.2 million the year before.
The stronger result was the result of a jump in its transmission revenue and a $34.6 million one-off payout from a 2003 cross-border lease deal.
Despite higher profits, Transpower slashed its dividend payout to the Government to $10 million from $40 million, saying it wants to keep more profits to invest in the ageing power grid.
Its annual report includes a trenchant critique of the state of regulation, written by chairman David Gascoigne and chief executive Ralph Craven.
They say it is in everyone's interests to have a well-functioning regulatory regime for power transmission.
"Unfortunately, that is not what appears to be developing in New Zealand. It is a matter of serious concern for Transpower that the approach to regulation that is developing stands in marked contrast to the approach adopted commonly in comparable jurisdictions overseas."
The pair criticised a lack of coherence between the overlapping roles of the Electricity and Commerce commissions, which needed integrating. .
The Electricity Commissioner is deciding whether to approve Transpower's plans for a $500 million line of pylons connecting south Waikato to south Auckland.
"The emerging approach of the Electricity Commission to regulating transmission investment risks undermining Transpower's accountability for the performance of the national grid, as well as threatening the future of the competitive electricity market."
Gascoigne and Craven also criticise the new Commerce Commission regulations that mean Transpower is not allowed to raise its prices by more than the annual inflation rate minus 1 per cent.
"Transpower has already 'breached' the revenue threshold set by the Commerce Commission in each of the last two years," it said - a situation that would continue for the next few years.
The SOE said it could demonstrate good reasons why it breached these thresholds, but the process was time-consuming and "brings with it uncertainty and reputational risks".
