The Tekapo canal is part of Genesis Energy's South Island
assets. Photo supplied.
Genesis, the smallest of the Government's energy
companies being lined up for a partial sale, yesterday said it
had seen a 2% year-on-year increase in retail electricity sales
in the first three months of the new financial year.
Chief executive Albert Brantley said the increase came
despite Genesis facing pressure on customer numbers and
''The electricity market remains challenging, given the
abundance of water and new generation entering the market
putting downward pressure on wholesale electricity prices.''
The company's targeted sales programme and a successful
advertising campaign during the three months ended September
had attracted new electricity and gas customers, Mr Brantley
The company also was successful with bids for some commercial
and central energy contracts, helping boost sales.
However, strong hydro storage and reduced demand were putting
pressures on wholesale pricing and the company's thermal
As a commercial response to market conditions, Genesis
announced last month (September) it would place a second of
its four older coal-fired generating units at Huntly into
storage before the end of the year.
Mr Brantley said competition for retail customers continued
to be high in the quarter. On September 30, the company had
540,422 electricity customer accounts, or 27% of market
share, 116,097 gas accounts, 44% of market share, and 10,033
lpg customers. Genesis Energy's electricity customers
included 84,000 accounts in the South Island, representing
16% of the total.
Genesis operates the Tekapo A and B stations in the Mackenzie
Prime Minister John Key last week said Genesis was still on
the Government's agenda for a partial sell-down next year
following the sales this year of 49% stakes in Mighty River
Power and Meridian.
Analysts suggested to the Otago Daily Times Genesis could be
split up and sold to listed energy companies, removing the
need for a prospectus and listing costs.