Contact names new chief executive

Power generator and retailer Contact Energy today announced the appointment of David Hunt as its new chief executive.

Mr Hunt will replace outgoing head Steve Barrett on October 1.

Analysts had previously flagged Mr Hunt as a front-runner among the Contact staff.

He has been involved in developing Contact's strategy for several years, and was a close advisor of Mr Barrett.

Mr Hunt has been seconded to work for Contact's majority-owner Origin in Sydney for the past nine months, and is said to have impressed Origin management.

He is seen as a politically-savvy and politically well-connected Kiwi who knows the New Zealand electricity game intimately, though he keeps a low profile.

Mr Hunt held several positions in the government sector before joining Contact in February 1996 when it had been newly split off from the Electricity Corporation and was a state-owned enterprise.

He has been economic adviser to the Minister of Finance and energy policy manager at Treasury.

Contact chairman Grant King said Mr Hunt was the best man for the job.

"David's mix of skills and experience makes him best suited to leading Contact through the next phase of its development."

Mr Hunt will be paid a base salary of $550,000 and will be eligible for short term and long term incentive payments, each up to 50 per cent of base salary, subject to the achievement of financial and non-financial objectives for the year.

The departing Mr Barrett was an executive with Contact's former majority shareholder Edison Mission Energy which sold out last year.

Mr Barrett, who has been Contact's chief executive since September 2000, agreed to stay on for a year.

He was officially farewelled by staff at a function in Wellington last night. He is retiring to the United States.

Mr King today paid tribute to the popular CEO.

"Steve has presided over a very successful period in Contact Energy's growth and consolidated the company's leadership position in the energy industry in New Zealand," he said.

Contact, with 10 hydro, gas and geothermal power stations, generates about a third of New Zealand's electricity and has around 600,000 electricity and gas customers.

Shares in the company last traded down a cent at $7.29 against a year high of $8.06 and a low of $5.71.

- NZPA