Continuing improvement delivers for Genesis Energy in Quarter One
1 November 2011
Genesis Energy is continuing to gain new customers across New Zealand as a result of its excellent customer service and competitive pricing offers.
A further 8,000 South Island electricity customers joined the national energy company in the Quarter ending 30 September 2011, the company said today in its Q1 Operational Report to the market.
National electricity customer accounts were up by 13,186 (2.4%) at 555,448 in Q1 2011/2012 compared to 542,262 in Q1 2010/2011. Gas customer accounts increased by 5,104 (4.6%) to 115,746 in Q1 2011/2012 compared to 110,642 in Q1 2010/2011. LPG customers were also up by 3,769 to 6,168 in Q1 2011/2012 compared to 2,399 in the same quarter last year.
The growth in customer numbers was achieved in a highly competitive market environment, driven by the Electricity Authority’s ‘What’s My Number’ switching campaign.
Genesis Energy’s Chief Executive Albert Brantley said it was "exceptionally pleasing that not only did customer numbers grow but our key indicator of customer satisfaction held at 91%. This is a result of continuing improvements to our customer service levels."
During the Quarter, Genesis Energy’s leading Advanced Meter programme passed the major milestone of 200,000 installed meters. At the end of Q1 2011/2012, Genesis Energy had a total of 207,066 Advanced Meters installed with nearly 29,000 Advanced Meters installed during the three month period.
Within its Energy Management division, total generation in Q1 was up 13% at 2,193GWh compared to 1,942GWh in the same period last year.
Thermal generation was up 8% at 1,380GWh in Q1 compared to 1,277GWh in Q1 2010/2011. Generation output from Huntly Units 1 to 4 was up by 103GWh (20%) on 519GWh in Q1 2010/2011, and renewable generation was up 22.4% at 813GWh for Q1 compared to 665GWh in Q1 2010/2011. Tekapo A and B power stations generation (247GWh) offset lower output from the Tongariro Power Scheme (down 8%) and the Waikaremoana Power Scheme at 164GWh (down 28%).
On 1 August 2011, Genesis Energy submitted resource consent applications for the Castle Hill Wind Farm project. The consent applications, together with an assessment of environmental effects, were submitted to the Greater Wellington Regional Council, the Horizons Regional Council, the Tararua District Council and the Masterton District Council. Public submissions closed on 26 September 2011 and the resource consent application hearing will commence on 28 November 2011.
The climatic outlook for Quarter 2 (three months to end of December 2011) indicates that temperatures are likely to be near average in the North Island and average or above average in the South Island, while seasonal rainfall and river flows are likely to be near normal in all regions.
Electricity futures prices published on the ASX website indicate that wholesale electricity prices may range between $79 in the North Island and $82 in the South Island by December 2011 .
Strong levels of competition in the energy retail markets are expected to continue over the next quarter.
Genesis Energy outlook
The above market and environmental forecasts suggest favourable conditions for Genesis Energy’s business performance in Q2.
While there are a range of operating and financial scenarios that might eventuate during the 2011/2012 financial year, based on the financial and operating performance to date, the Company expects to achieve or exceed the targets set out in its Statement of Corporate Intent for 2011/2012.
The Genesis Energy Q1 Operational Report is available at www.genesisenergy.co.nz/about-us/reports/continuous-disclosure
For more information contact:
Public Affairs Manager
P: 09 580 4782
M: 021 681 305