Latest news with #ManawaEnergy
RNZ News
15-05-2025
- Business
- RNZ News
Manawa Energy's profit tumbles after 'extremely challenging' year
Manawa Energy's profit tumbles. Photo: 123RF Manawa Energy's bottom-line profit has crashed after a challenging year shaped by weak generation, high wholesale electricity prices and after an independent power retailer defaulted on payments. Key numbers for the 12 months ended March compared with a year ago: The electricity generator, which has just received regulatory approval to be taken over by Contact Energy , saw its total generation volumes fall 15 percent due to low hydro inflows and wind generation. Manawa said it also faced "extremely challenging market conditions". "Extreme fuel shortages across the winter period of 2024 drove wholesale electricity spot prices to record levels," the company told the NZX. "Manawa was, at times, exposed to these spot prices given the relatively fixed nature of its contractual sales volumes." The shortages were driven by low national hydro inflows, below-average wind generation, and gas shortages. But it "quickly reversed" as conditions returned to normal and as gas availability "dramatically increased". "The sudden and rapid increase in available fuel saw spot electricity prices fall dramatically across most of the period from September 2024 through to the end of the calendar year," Manawa said. The company also wrote off $6.8 million in bad debts after independent retailer Prime Energy defaulted on payments. "The unprecedented conditions of winter 2024 resulted in a further adverse impact on the business with an independent electricity retailer, for whom Manawa acted as a wholesale intermediary, defaulting on its payment obligations," it said. Manawa said it recovered a significant portion of the original debt. The company did not provide a full-year outlook and did not declare a final dividend amid the imminent takeover by Contact Energy. Manawa expected the deal, which would be carried out by way of a scheme of arrangement, to be implemented in July.
RNZ News
07-05-2025
- Business
- RNZ News
Independent electricity retailer bemoans Manawa decision
Matahina Power Station is owned by Manawa Energy. Photo: Manawa Energy / supplied An independent electricity retailer warns the acquisition by Contact Energy of the country's fifth biggest power generator will ultimately cost consumers more. The Commerce Commission announced approval yesterday for the acquisition of Manawa Energy by Contact. Chair John Small says the Commission does not believe the deal will push electricity prices up for consumers. The Major Energy Users Group has deep concerns about competition, and expects the government and regulators to closely watch that the decision does not increase already elevated prices. Independent retailer Electric Kiwi chief executive Huia Burt says generator-retailers like Contact have been exercising market power to the detriment of consumers and businesses.
RNZ News
06-05-2025
- Business
- RNZ News
Contact Energy cleared to buy 100% of Manawa Energy shares
Photo: RNZ / Nate McKinnon The Commerce Commission has granted clearance for Contact Energy Limited to acquire up to 100 percent of the shares in Manawa Energy Limited. The regulator said it looked at effect of the merger on supply and prices in the wholesale electricity and came to the conclusion it would not substantially lessen competition. Commission chair John Small said it did not believe the deal would push electricity prices up for consumers, or lead to the two companies being able to coordinate supplies in the market to their own advantage. He said they were satisfied the two companies woiuld compete in supplying to other power companies. More to come ... Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
