Genesis Power Limited
[ Last Updated 15 November 2005 ]
Date Received: 2004-02-10
Original version: Transitional Enforcement of Transpower's Pricing: Submissions: No. 10: Genesis Power Limited [57KB PDF]
Contents
Submission to the Ministry of Economic Development on the Proposal Regarding Transpower's Charges for Grid Connection
By Genesis Power Limited
10 February 2004
1. Introduction
1.1 Genesis Power Limited ("Genesis") appreciates the opportunity to comment on the Proposal Regarding Transpower's Charges for Grid Connection ("Transpower Charges")
1.2 Genesis' contact is:
Maureen Shaddick
General Counsel and Company Secretary
PO Box 17 188
Greenlane
Auckland
Telephone 09-580 2094
2. Genesis Power Limited
Genesis is a state-owned enterprise with a diverse electricity generation portfolio and is one of New Zealand's largest energy retailers. We operate 1,600MW of electricity generation including New Zealand's largest thermal power station at Huntly, hydro stations at Tongariro and Waikaremoana and a wind farm in the Wairarapa. Genesis also owns cogeneration facilities at large industrial sites and an interest in the Kupe Oil and Gas field. As a retailer, Genesis, trading as Genesis Energy, has approximately 600,000 electricity and gas customers located predominantly in the North Island. Genesis is currently a member of the New Zealand Electricity Market, a party to the Metering and Reconciliation Information Agreement and a member of the Electricity Complaints Commissioner Scheme.
3. Submission
3.1 From an electricity retail business perspective, Genesis is opposed to the proposal to shift the current pricing methodology for Transpower from a pricing year beginning 1 April to a pricing year beginning 1 July effective from 1 July 2005.
3.2 We believe that a move from the 1 April status quo, when Transpower's new charges become effective and from when most distributors new lines charges become effective, will lead to electricity lines businesses potentially changing pricing twice a year; once around April to accommodate the financial requirements of their own businesses, and a second time in July to pass through changes in Transpower's pricing.
3.3 Retailers will have to respond to these potential multiple changes by reviewing and if appropriate adjusting their retail pricing more than once a year. For consumers this will mean additional costs in retail energy prices due to the costs associated with implementing multiple price changes and consumer dissatisfaction at price changes occurring more frequently.
4. Further Information
Genesis' contact would be happy to receive any queries in relation to our submission.
We do not seek confidentiality in relation to any aspect of this submission.
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