Sharechat Logo

Meridian and Contact resolve Manapouri dispute

By Phil Boeyen, ShareChat Business News Editor

Friday 20th October 2000

Text too small?
State-owned Meridian Energy has settled a dispute with listed energy company Contact over the amount it pays for power during shutdowns of the Manapouri hydro station.

The shutdowns are to allow for work on a second tailrace tunnel project at Manapouri. Meridian cried foul earlier this year during a May shutdown, claiming the prices it was charged by Contact while Manapouri was off-line were extortionate.

At the time Meridian claimed Contact had not stood by a deed signed in 1996 which set the price of power if Contact had to supply Comalco's aluminium smelter at Bluff.

The two companies say they have now been able to negotiate an agreement that is commercially viable for both companies, and covers both the Manapouri shutdown in May this year, and also provides a pricing formula to cover future shutdowns.

They say the settlement will allow the tunnel project to be completed, and for Contact to achieve fair prices for the electricity it generates during Manapouri outages.

  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:

UPDATE Contact increases dividend as FY earnings rise; quits wind projects
Contact increases dividend as FY earnings rise in competitive market
Contact shares drop to 2-month low, says 'hard to see' investment under Labour-Greens plan
Contact Energy, parent Origin mull redemption of $2.03 bln of notes after S and P change
Solid first half for Contact, despite retail margins squeeze
Contact sells mothballed New Plymouth power station for $24 mln
Contact Energy's King hints at greater returns as cash mounts
Contact energy beats FY profit forecast as revenue surges
Elliott leaving Contact for Origin role
Contact sees 2014 cash-flow boost as projects put on ice