Sharechat Logo

Hydro companies will pass on any water charges, owner says

Thursday 11th October 2012

Text too small?

Hydo-electricity generators will likely pass on any charges for water in higher power bills, Infratil, the majority owner of TrustPower, says.

The comment is made in a prospectus for a bond sale released by the infrastructure investor on Wednesday.

TrustPower and other hydro generators do not pay for access rights to water that have been granted by resource consents.

There is an increasing focus on the value of these access rights, and the issue of allocation is currently being addressed by the New Zealand Land and Water Forum, the prospectus says.

"It is possible that TrustPower and other hydro generators will eventually face some additional tax or resource rental for continued access to water.

"As with a tax on carbon emissions, these taxes would likely be passed through to consumers by increasing electricity prices," the prospectus says.

The government delayed the sale of 49 percent of Mighty River Power until next year while it consults Maori about a "shares-plus" concept in a report by the Waitangi Tribunal on the issue of water rights.

The prospectus also notes that Infratil's investment in TrustPower makes up a substantial part of its value and that there are risks associated that.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite

IRG See IRG research reports