Drought conditions in the south of the South Island have taken their toll on Contact Energy's earnings, prompting the major hydro-electricity generator to report an 18.7 percent drop in its net profit for the first half to December 31.
In the wake of the Project Hayes decision, it is business as usual for Contact Energy, weighing up options for hydro development on the Clutha River, and Pioneer Generation, looking at small-scale wind farms.
The Central Otago District Council has opted to split its energy supply contracts between two different suppliers in a move which is expected to produce a saving of $37,000 a year.
Engineering design plans for hydro-electric dams on the Clutha River are being drawn up as Contact Energy considers the options for its power generation schemes.
Two influential financial results are due out soon, with interest in Telecom high as it is expected to be the last before the company splits into two.
Contact Energy shareholders have followed consumers, fleeing the electricity retailer's stocks as droves of customers sign up elsewhere.
Contact Energy is seeking to raise $350 million - in part to fund a new geothermal 166-CT megawatt (MW) power station in the North Island - through a one-for-nine renounceable rights issue to shareholders.
Contact Energy says there is no demand at present for any expansion of irrigation from the Kawarau Arm of Lake Dunstan.
Contact Energy lost more than 2000 Dunedin customers in the same quarter it controversially hiked prices by more than 9%, the latest Economic Development Ministry electricity price survey suggests.
Prime Minister John Key yesterday cautioned Contact Energy not to use the emissions trading scheme (ETS) as an excuse to raise the price of electricity for Dunedin residents.
Contact Energy, hit by contractual obligations to buy gas during the year that it could not use because of buoyant hydro-generation, has posted a 6% decline in after-tax profit at $150 million.
Contact Energy remains principal sponsor of the Alexandra Blossom Festival for the third successive year, but the level of its funding is confidential.
Hydro-electricity generation schemes on the Clutha River remain insulated from the affects of no rainfall and dropping catchment lake levels, Contact Energy says.
A decision on Contact Energy's preferred option for hydro-electric development on the Clutha River is unlikely to be made until next year.
Contact's latest and "alarming" power price increase suggests electricity reforms have failed and should push the Government one step closer to a comprehensive inquiry, Dunedin South MP Clare Curran says.
Pressure is mounting on Mercury Energy to honour its botched offer of drastically discounted power to hundreds of Dunedin businesses.
Five New Zealand power generators, which banded together to trade forward contract hedging derivatives as EnergyHedge, have snubbed New Zealand stock exchange attempts to become the trading platform, instead opting to join the Australian stock exchange.
A Central Otago district plan change sparked by proposals for new power generation projects is likely to cause confusion rather than clarify the issues, power companies say.
Contact Energy Ltd lost 2000 electricity customers in the past month and 6000 customers in the past year, according to its latest operating report.
Contact Energy still has some homework to do before making a decision on its preferred option or options for hydro-electric development on the Clutha River.
