Meridian and Contact have been cleared following an investigation into the spilling of water from their South Island dams. Photo / Grant Bradley
Meridian and Contact have been cleared following an investigation into the spilling of water from their South Island dams. Photo / Grant Bradley
The Electricity Authority said it had found that neither Meridian nor Contact had breached trading provisions following an "undesirable trading situation (UTS)" complaint made by group of power companies.
Haast Energy Trading, Ecotricity, Electric Kiwi, Flick Electric, Oji Fibre, Pulse Energy Alliance and Vocus claimed that a UTS involving thespilling of water from November 2019 through to January 2020.
The companies alleged that Meridian's and Contact's action had the effect of raising spot power prices.
In today's decision, the authority said it had completed its investigation into Meridian and Contact's alleged breaches of the high standard of trading conduct provisions of the Electricity Industry Participation Code over the period concerned.
"The investigation concluded there was no breach of the existing rules and on that basis the board has decided not to lay a complaint with the Rulings Panel," the authority said.
The authority's chief executive, James Stevenson-Wallace, said that, based on the information available, Meridian and Contact did not breach the high standard of trading conduct on the basis that the conduct during the period was sheltered by the "safe harbour" provisions.
The investigator concluded Meridian and Contact did not breach the high standard of trading conduct because available capacity was offered, offers were made and revised in a timely manner, and one of the set of conditions of the safe harbour rule was met.
"Specifically, both generators demonstrated consistent offers in periods where they were pivotal with offers in periods where they were not," he said.
The trading conduct rules have been considered in several events since they were introduced in 2014, and their interpretation has evolved, the authority said.
It said a lack of clarity in how the rules were structured presented "interpretation issues" and challenges for how the standards are applied.
As a result, these rules have been under review and the Authority has consulted on proposed changes, it said.
The authority said it expected to make a final decision on the proposed new rules in June.
Cavalier CEO resigns
Cavalier said it had "regretfully accepted" the resignation of chief executive Paul Alston.
The carpet maker said Alston would continue in the role while a replacement was recruited.
Alston joined Cavalier as chief financial officer in 2012 and has served as chief executive since May 2015.
Cavalier CEO Paul Alston. Photo / File
He oversaw the turnaround and restructure of the carpet business, as well as the development of its new, all-wool and natural fibres strategy.
Chairman George Adams said Alston had led Cavalier through an intensive period of change and restructuring.
"The company now has zero debt, a strong and experienced leadership team and the financial resources to execute our new strategy which positions Bremworth as a global leader in designing and creating desirable, high performing, safe and sustainable interior products," he said in a statement.
A smaller THL loss in store
Tourism Holdings (THL) said it expects to report a loss of $14-$18 million for the June year, much lower than the current average loss projected by market analysts of about $21.5m.
Net debt will not exceed $90m by the June 30 balance date, THL said.
The vehicle sales market in the United States had remained strong, it said.
"Record average sales margins have been achieved in recent months. Some of this margin growth is considered one-off in nature, reflective of the current market conditions," the company said.
Domestic US rental demand had remained strong during the current "shoulder" season.
"We have positive expectations for the upcoming 2021 summer season and expect that domestic demand will be at or above the 2020 summer season," THL said.
Following completion of the "Great New Zealand Motorhome Sale" campaign in late 2020, average sales margins had recovered to previous norms.
Vehicle sales volumes continued in line with that achieved in the first half of 2021, it said.
The New Zealand rental business would continue to lose money, but the company had seen an increase in web search activity in connection with the re-opening of Trans-Tasman travel.
QEX to de-list
QEX Logistics, which is suspended from trading on the NZX, said it intends to delist from the exchange and to position itself for sale.
In February, QEX was suspended from trading due to non-compliance with the NZX Listing Rules relating to board composition following the resignation of its independent directors.
"Despite ongoing recruitment efforts, several key factors have made it difficult for QEX to appoint the required number of qualified independent directors, with the relevant experience, to regain compliance with the NZX Listing Rules," the company said.
"The company considers the delisting a necessary step to end this period of non-compliance and create a pathway to deliver the best possible outcome for its shareholders," it said.
"If the delisting proceeds, a process will be undertaken to prepare and position the group for a third-party business sale," it said.
The delisting will be subject to prior approval by NZX, and the satisfaction of any conditions set by NZX.
The conditions will include shareholder approval by way of an ordinary resolution.
QEX will propose to NZX that an ordinary resolution of its shareholders other than - founder Ronnie Xue - is received for the delisting.
"This is necessary and appropriate given that Mr Xue is the company's majority shareholder (holding 70.62% of the total shares) and its sole director," the company said.
NZ RegCo, the NZX's regulatory arm, put trading in QEX shares into suspension on February 18.
On the same day, former Federated Farmers chief executive Conor English resigned from the board, along with Danny Chan and Martin MacDonald.
In its latest result - for the six months to September last year - QEX turned in a $5.86m loss.
In November, the company said it was investigating missing inventory, presumed stolen, from a Shanghai bonded warehouse, worth $4.3m.
QEX listed on the exchange's then small-cap NXT in 2018.
Before its suspension, the stock traded at 28.5c, having lost 47 per cent over the last 12 months.
