Meridian full year profit up 20pc

Government owned power company Meridian Energy's profit rose more than 20 per cent to $132.9 million in the year to June, despite a $31 million write down on Project Aqua.

The generator-retailer's chairman Francis Small said the strong result was "largely due to the very good inflows into the company's storage lakes during the second half of the year".

However, the company has also raised charges to retail customers by about 15 per cent over the past year.

Nevertheless, Dr Small said the relationship between hydro lake inflows and financial performance over the last few years demonstrated how crucial water was to the commercial success of the company.

Today's result adds to the company's 30 per cent hike in profit last year to $109.3 million despite suffering a "significant set-back" from the power shortage caused by a dry autumn.

Dr Small said the cancellation of the controversial Project Aqua had been a tough decision, but the company had enjoyed a "positive experience with its wind development programme".

"In the course of the year we have made rapid progress on the country's biggest windfarm at Te Apiti.

"We will have this development fully commissioned before the end of this calendar year, with other developments lined up to follow in quick succession."

Meridian is the largest of the three Government owned power companies including Genesis and Mighty River and controls about 30 per cent of the country's electricity generation.

Meridian owns eight hydro stations on Waitaki River, the hydro station at Manapouri and the Wellington wind turbine.

It also owns five small hydro stations in Australia.

Mighty River Power this week posted a bumper $99.8 million profit and Genesis Power posted an $80.1 million profit, 31 per cent ahead of the year before. Both firms put up prices about 9 per cent in the last year.

- NZPA