TrustPower's Tempest exits after 23 years with firm

Friday 22nd May 2009

TrustPower, the Infratil-controlled utility company, said chief executive Keith Tempest resigned, effective next Christmas, having presided over a 400% advance in the share price since taking the top job in 2001.

Tempest exits the job after a 23-year career at TrustPower, the nation’s fifth-biggest utility. The departure comes a day after the Commerce Commission said it issued a warning to TrustPower for potentially anti-competitive behavior in negotiations with state-owned Genesis Energy.

The company’s shares soared from $1.60 in mid-2001 to $7.80 as of yesterday. The stock dropped 1.3% to NZ$7.70 on the NZX 50 index today.

The Commerce Commission released findings of the biggest-ever study into wholesale electricity pricing yesterday, an gave details of the warning to TrustPower, though it deemed the company to be the only major electricity market player unable to exercise market power.

“We would all prefer that he carried on for few more years,” said chairman Bruce Harker, in a statement. TrustPower’s board will initiate an appointment process shortly, and seek candidates both internally and externally.

Tempest will continue in his governance roles, including several subsidiaries of TrustPower along with Infratil subsidiary NZ Bus.

Businesswire.co.nz

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