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TrustPower sees one more year of intense retail electricity competition

Thursday 11th March 2010

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TrustPower expects electricity market reforms to drive customer churn as state-owned electricity retailers ditch and replace customers in different areas, reflecting asset swaps ordered in a December review by Energy Minister Gerry Brownlee.

The 50.5% Infratil-owned electricity generator and retailer is predicting 100,000 South Island and 40,000 North Island electricty-customer switches, along with some swapped commercial and industrial accounts.

However, "a new equilibrium will be reached" by early to mid-2011, ending almost three years of unusually intense competition in retail electricity," according to a presentation for an Infratil investor briefing, held today.

Much of the customer-poaching will reflect retailers' needs to reassemble their retail portfolios and reduce the business risk and losses incurred through requirements to own new assets and contract for mandatory amounts of electricity in both the North and South Islands.

The effect of the policy is to make South Island-based Meridian seek new North Island customers, while Genesis and MightyRiverPower, under the Mercury brand, must seek new southern customer bases.  To guard against that risk, TrustPower says it has 75% of its high value customers on contract terms, making them less likely to be tempted by competing offers.

Despite the competition, overall upward pressure on wholesale and therefore retail electricity prices will remain, says Infratil, although TrustPower has "moderated retail price uplift short term".

Wholesale prices will also be more volatile than in the past, creating value in both peaking plant and TrustPower's hydro storage, prompting construction of up to 170 Megawatts of additional hydro generation potentially available from its existing assets, of which 60MW could be available quickly.

The presentation concentrates particularly on a "unique opportunity" at TrustPower's Coleridge hydro scheme, in mid-Canterbury, which has "tremendous potential" not only to add 70MW of generating capacity, but also 100,000 hectares of additional irrigation at a time when Canterbury water issues are becoming a major policy challenge.

 

Businesswire.co.nz

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Get quotes for TrustPower Limited Ordinary Shares (TPW)
NZX Annoucements for TPW
26 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
25 Aug 2010 APPNDX7: TPW090: Senior Bond Series 16 Interest Record Date Correction
25 Aug 2010 INTEREST: TPW080: Senior bond Interest, correction of Record Date
25 Aug 2010 DIRECTOR: TPW: Director Resignation and Appointment
23 Aug 2010 APPNDX7: TPW: Amended Appendix7 - Subordinate Bond Interest - Series 14
23 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
20 Aug 2010 APPNDX7: TPW090: Notice of Event - Senior Bond Interest - Series 16
20 Aug 2010 APPNDX7: TPW080: Notice of Event - Senior Bond Interest - Series 14
20 Aug 2010 APPNDX7: TPW070: Notice of Event - Subordinated Bond Interest - Series 15
20 Aug 2010 APPNDX7: TPW: Notice of Event - Subordinate Bond Interest - Series 14
20 Aug 2010 APPNDX7: TPW020: Notice of Event - Subordinated Bond Interest - Series 12
19 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
18 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
17 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
16 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
13 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
12 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
11 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
9 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
4 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
4 Aug 2010 DIRECTOR: TPW: TrustPower Notice of Independent Directors
3 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
2 Aug 2010 BUYBACK: TPW: TrustPower Share Buyback
30 Jul 2010 ADDRESS: TPW: TrustPower Annual Meeting Presentation
30 Jul 2010 ADDRESS: TPW: Chairman's Address - 30 July 2010
30 Jul 2010 QUARTER: TPW: TrustPower Operating Results 3 mths ending 30 June 10
26 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
23 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
22 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
21 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
20 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
19 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
16 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
12 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
8 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
6 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
2 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
1 Jul 2010 BUYBACK: TPW: TrustPower Share Buyback
30 Jun 2010 BUYBACK: TPW: TrustPower Share Buyback
25 Jun 2010 MEETING: TPW: TrustPower Notice of Annual Meeting
25 Jun 2010 ANNREP: TPW: TrustPower 2010 Annual Report
23 Jun 2010 BUYBACK: TPW: TrustPower Share Buyback
11 Jun 2010 BUYBACK: TPW: TrustPower Share Buyback
9 Jun 2010 BUYBACK: TPW: TrustPower Share Buyback
4 Jun 2010 BUYBACK: TPW: TrustPower Share Buyback
2 Jun 2010 BUYBACK: TPW: TPW Share Buyback
31 May 2010 RELINT: TPW: Ongoing Disclosure Notice (Ian Samuel Knowles)
28 May 2010 RELINT: TPW: TrustPower Limited Submitt Disclosure Notices
28 May 2010 APPNDX7: TPW070: Notice of event affecting securities-subordinated bonds
28 May 2010 APPNDX7: TPW060: Notice of event affecting securities-subordinated bonds
28 May 2010 APPNDX7: TPW020: TrustPower Notice of Event Affecting Securities
27 May 2010 APPNDX7: TPW090: TrustPower Notice of Event Affecting Securities
27 May 2010 APPNDX7: TPW080: TrustPower Notice of Event Affecting Securities
27 May 2010 APPNDX7: TPW070: TrustPower Notice of Event Affecting Securities
27 May 2010 APPNDX7: TPW060: TrustPower Notice of Event Affecting Securities
27 May 2010 APPNDX7: TPW020: TrustPower Notice of Event Affecting Securities
25 May 2010 APPNDX7: TPW070: Appendix 7 - Interest Payment (TPW070)
25 May 2010 APPNDX7: TPW060: Appendix 7 - Interest Payment (TPW060)
25 May 2010 APPNDX7: TPW020: Appendix 7 - Interest Payment (TPW020)
25 May 2010 APPNDX7: TPW090: Appendix 7 - Interest Payment (TPW090)
25 May 2010 APPNDX7: TPW080: Appendix 7 - Interest Payment
25 May 2010 BUYBACK: TPW: On-market Share Buyback Notice
20 May 2010 ADDRESS: TPW: TrustPower Presentation to Investor Briefings
19 May 2010 DIRECTOR: TPW: TrustPower Appoints Independent Director
14 May 2010 APPNDX7: TPW: Appendix 7 Ordinary Share Dividend Full Year
14 May 2010 FLLYR: TPW: TrustPower Year End Announcement 31 March 2010
11 Mar 2010 ADDRESS: TPW: TrustPower's Presentation to the Infratil Investor Briefing
24 Feb 2010 APPNDX7: TPW070: TPW070 - TrustPower Interest on Subordinated Bonds
24 Feb 2010 APPNDX7: TPW060: TPW060 - TrustPower Interest on Subordinated Bonds
24 Feb 2010 APPNDX7: TPW020: TPW020 - TrustPower Interest on Subordinated Bonds
19 Feb 2010 APPNDX7: TPW090: Appendix 7 090 Series 16 Senior Bonds Inerest Payments
19 Feb 2010 APPNDX7: TPW080: Interest on Subordinated Bonds payable on 15 December 2009
5 Feb 2010 QUARTER: TPW: TPW Third Quarter Operating Results
29 Jan 2010 ALLOT: TPW090: TrustPower Senior Bonds Allotment Notice
22 Jan 2010 ALLOT: TPW090: TPW090 - Allotment of Seven Year Senior Bonds
15 Jan 2010 RELINT: TPW: Initial disclosure (Therese Thorn)
15 Jan 2010 ALLOT: TPW090: TrustPower Limited Allotment of Seven Year Senior Bonds
11 Jan 2010 ALLOT: TPW070: TrustPower Seven-year Senior Bonds Issue Allotment
 
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