MEL - Meridian Energy

[mouse]

My sixpennyth is that Meridian will supply the 400MW, but no more. They will then sell the other 172MW on the open market. Making a bit both way. Why should Meridian support Tiwai more than is profitable for Meridian? Which brings me to the other option. Sell Manapouri to Tiwai. How much is it worth? Possibly even a dollar each share? Any other offers?

[Hoop]

It's not me. I hate Cats as well.

..........

[Zaphod]

Yep agree & there aren't may things I agree on in regards Key.
Being the cynic I am I wonder if he knows its a done deal to stay open bar the pricing?
If it closes all of NZ barring Southland will be better off.
If I'm Rio & I'm still making a buck in a very depressed ali market & the alternative is to pay a massive clean up bill, it stays open.

Overall, IMO a closure would have a significant negative economic effects across the entire country. A significant surplus of cheap power would also wipe several hundreds of millions off generators and retailers nationwide, leading to job losses and lower rates of investment in infrastructure. Our balance of trade would also be negatively impacted.

We'd all like to think that closure would be the golden egg for electricity consumers (and there would be some benefits), but I think overall it would be decidedly negative.

[warthog]

Overall, IMO a closure would have a significant negative economic effects across the entire country. A significant surplus of cheap power would also wipe several hundreds of millions off generators and retailers nationwide, leading to job losses and lower rates of investment in infrastructure. Our balance of trade would also be negatively impacted.

We'd all like to think that closure would be the golden egg for electricity consumers (and there would be some benefits), but I think overall it would be decidedly negative.

So Rio Tinto are playing amateurs English, Joyce and co., as well as MEL?

[Xerof]

Who owns Manapouri? Does it ONLY feed the smelter? how much would it take to tie it into the grid?

don't answer - I remember this was discussed quite a while ago, so I'll trawl for it myself

[mouse]

Who owns Manapouri? Does it ONLY feed the smelter? how much would it take to tie it into the grid?

We have already used power from Manapouri when South Island lakes were a bit low. Tiwai shut off some of their pots. Plus I Think that Meridian would not have to pay for the Grid costs of connexion since we have Transpower?, for that. ATM we only need to connect the 172MW should Tiwai opt for only 400MW.

[Daytr]

Really? They are selling the power already at a hugely discounted rate. Any money that the generators lost would end up in the hands of Joe Citizen.
Power companies have been scalping NZers for too long. Job loses as well. What job losses? Money in peoples pockets will be spent & create jobs & a boost to the economy.

Overall, IMO a closure would have a significant negative economic effects across the entire country. A significant surplus of cheap power would also wipe several hundreds of millions off generators and retailers nationwide, leading to job losses and lower rates of investment in infrastructure. Our balance of trade would also be negatively impacted.

We'd all like to think that closure would be the golden egg for electricity consumers (and there would be some benefits), but I think overall it would be decidedly negative.

[Baa_Baa]

Really? They are selling the power already at a hugely discounted rate. Any money that the generators lost would end up in the hands of Joe Citizen.
Power companies have been scalping NZers for too long. Job loses as well. What job losses? Money in peoples pockets will be spent & create jobs & a boost to the economy.

That's a heavy burden for the shareholders who thought they were buying a boring utility that had low growth prospects and would be sharing it's profits. We didn't ask the government to sell down it's 50%, we just bought it off them, and look what's happened, we've had to ride out massive uncertainty and capital value fluctuations that frankly only the government should have had to deal with. It's about time they dealt with them, by focusing on transmission charges which are rorting the system, as opposed to the gentailers who are fiercely competing on retail margins. imho.

[Daytr]

BaaBaa, the risk in regards the smelter has always been there in fact I remember posting something about it when the government floated the assets. I agree though re the generators. The industry is generally heavily protected & stifles alternative energy generation such as solar.

[Zaphod]

Really? They are selling the power already at a hugely discounted rate. Any money that the generators lost would end up in the hands of Joe Citizen.
Power companies have been scalping NZers for too long. Job loses as well. What job losses? Money in peoples pockets will be spent & create jobs & a boost to the economy.

If you were suggesting that the underlying problem (if there is one) causing relatively high electricity pricing in this country would be resolved, then I would be all for it. However what you're advocating is to artificially lower the price by flooding the market with excess energy. That won't fix the issue, especially in the long term. All it will do is destroy the wealth of shareholders, including the taxpayer and give consumers a very short term fix.