Contact Energy

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Contact Energy Limited
Type Public
Traded as NZX: CEN
Industry Electricity generation
Electricity retailing
Natural gas wholesaling
Natural gas retailaing
LPG retailing
Founded 1996 (1996)
Headquarters Wellington, New Zealand
Key people Grant King, Chairman
Dennis Barnes, Chief Executive
Revenue Decrease NZ$2,526,000,000[1]
Operating income Increase NZ$541,000,000[1]
Profit Increase NZ$199,000,000[1]
Total assets Increase NZ$6,197,000,000[1]
Total equity Increase NZ$3,537,000,000[1]
Employees 1,160 [1]
Website www.contactenergy.co.nz

Contact Energy Limited is a New Zealand electricity generator, natural gas wholesaler and electricity, natural gas, and LPG retailer.

The company is the second-largest electricity generator in New Zealand (after Meridian Energy), generating 23% of all electricity in 2012, and has the second-largest market share (23%) of electricity retailers (after Genesis Energy).[2] Contact owns and operates twelve power stations in New Zealand with a generation portfolio made up of geothermal, hydro and natural gas assets. [3] Contact Energy's power stations consist of five gas turbine facilities, in Auckland, Hamilton, Hawkes Bay and Taranaki; five geothermal stations north of Taupo; and two hydroelectric dams on the Clutha River.

Contact originated with the partitioning of the Electricity Corporation of New Zealand in 1996, and publicly listed in 1999. The Australian energy company Origin Energy holds a 52% shareholding in Contact.[4]

History[edit]

Contact was incorporated on 8 November 1995 and became a state owned enterprise on 18 November 1995.[5] Contact commenced operations on 1 February 1996, acquiring assets from ECNZ with a payment of $1.6 billion.[5] As the founding chief executive, Paul Anthony was instrumental in establishing the corporation distinct from ECNZ.

In 1999, the company was sold, with 40% purchased by Edison Mission Energy (EME) as cornerstone shareholder for $5 per share. The remaining 60% was sold in a public offering of shares for $3.10 per share.[6] EME subsequently increased its shareholding to 51%.

Following financial difficulties elsewhere in its business, EME sold its shareholding to Origin Energy in 2004.

During the 2008 financial crisis, Contact decided to increase prices by up to 12% while doubling its directors' fees. As a result, it lost more than 40,000 customers in six months − 10% of the total. Its profit was halved. Contact calls this the worst blow to its reputation in the company's history.[7][8]

Power stations[edit]

Contact owns and operates (unless otherwise stated) the following power stations:

Name Fuel Type Location Capacity
(MW)
Annual Average
Generation (GWh)
Commissioned Notes
New Zealand stations
Clyde Hydroelectric Conventional Clyde, Otago 464 2050 1992
Ohaaki Geothermal Flash steam Ohaaki, Waikato 70 300 1989
Otahuhu B Gas Combined-cycle turbine Otahuhu, Auckland 380 2380 2000
Poihipi Geothermal Flash steam Wairakei, Waikato 55 350 1996
Roxburgh Hydroelectric Conventional Roxburgh, Otago 320 1610 1956-1962
Stratford Gas Open-cycle / Combined-cycle turbine Stratford, Taranaki 585 3350 1998, 2010
Te Huka Geothermal Binary cycle Taupo 23 2010
Te Mihi Geothermal Flash steam north of Taupo 159 2014
Te Rapa Gas Open-cycle turbine
Cogeneration
Te Rapa, Waikato 44 200 2000
Wairakei Geothermal Flash steam / Binary cycle Wairakei, Waikato 161 1310 1958, 2005
Whirinaki Diesel Open-cycle turbine Whirinaki, Hawke's Bay 155 9 2004

Decommissioned stations[edit]

Name Fuel Type Location Capacity
(MW)
Annual Average
Generation (GWh)
Commissioned Decommissioned Notes
Otahuhu A Gas Open-cycle turbine Otahuhu, Auckland 1968

In 2001, Contact decommissioned the FT4 twinpac open cycle power stations on the Stratford and Whirinaki sites, and sold the generating equipment offshore.

In June 2013, previously decommissioned New Plymouth Power Station was sold to Port Taranaki and Methanex New Zealand.[9]

Developments[edit]

Generation developments[edit]

Contact Energy Development Projects
Name Fuel Location Proposed
capacity (MW)
Status Notes
Hawea Hydro Lake Hawea, Otago 17 Consents granted Expect complete by 2017[10]
Tauhara stage 2 Geothermal near Taupo 250 Consents granted
Waitahora Wind Puketoi Ranges, east of Palmerston North 156 Consents granted

Other developments[edit]

In 2001 and 2002, Contact and Edison Mission Energy developed the Valley Power Peaking Facility near Traralgon in Australia. This plant was sold in 2005.[11]

In 2006, Contact and Genesis Energy set up a joint venture project called Gasbridge to import LNG.[12] Their proposed terminal at Port Taranaki was highly controversial, and the plan was shelved in favour of an offshore terminal plan in mid 2009. [13]

Contact and Origin Energy have developed a gas storage facility at the depleted Ahuroa reservoir in Taranaki.[14]

In 2012, Contact announced it would not proceed with hydro developments on the Clutha River, at Queensbury, Luggate, Tuapeka and Beaumont.[15]

In June 2013, the Taheke joint venture (Taheke 8C Incorporated and Contact Energy) made the decision to delay the development of the Taheke Geothermal field due to market conditions.

In August 2013, Contact announced its decision to exit the Hauāurumā raki wind generation development on the Waikato coast and that they would not proceed in the foreseeable future with the Waitahora wind generation development project near Dannevirke in the Tararua district.

See also[edit]

References[edit]

  1. ^ a b c d e f "2013 Annual Report". Contact Energy. 19 August 2013. 
  2. ^ "Energy in New Zealand". Ministry of Business, Innovation and Employment. September 2013. 
  3. ^ "Power Stations". Contact Energy. Retrieved 6 October 2013. 
  4. ^ "Geothermal". Origin Energy Public Website. Origin Energy. Retrieved 4 October 2012. 
  5. ^ a b Annual Report 1996. Contact Energy. 11 December 1996. 
  6. ^ Newberry, Sue (April 2005). "Electricity Reforms and Contact Energy Ltd". Converge. 
  7. ^ Bradley, Grant (15 August 2009). "Director-fee fallout hurts Contact". NZ Herald. 
  8. ^ "The Market Teaches Contact A Lesson After Director’s Fees Fiasco". NZ Energy & Environment Business Week. 29 April 2009. 
  9. ^ Rilkoff, Matt (14 June 2013). "Land purchase powers port's big plans". Taranaki Daily news. 
  10. ^ Ibbotson, Lucy (6 January 2012). "Contact vies for more time to establish hydro scheme". Otago Daily Times. 
  11. ^ "Contact Energy Announces Sale Of Valley Power Stake" (Press release). 31 August 2005. Retrieved 13 February 2011. 
  12. ^ "Gasbridge - Preserving New Zealand's future energy options". Gasbridge. 4 October 2006. 
  13. ^ "Port LNG proposal off table". Taranaki Daily News. 2 July 2009. Retrieved 10 May 2010. 
  14. ^ "Contact Energy opens $400 million development in Taranaki" (Press release). Contact Energy. 31 May 2011. 
  15. ^ "Contact not proceeding with Clutha Development" (Press release). Contact Energy. 1 May 2012. 

External links[edit]