TransAlta blames exit on Coalition

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WELLINGTON - The Coalition policy of not selling further state generating assets is driving TransAlta out of New Zealand.

Government policy is to consider amalgamating the three baby ECNZs to form one state-owned generator.

TransAlta's chief executive, Steve Snyder, said in Canada that a Government decision not to sell Genesis, Meridian or Mighty River led to its decision to seek bids for its 76 per cent stake in TransAlta New Zealand.

"The basis of our strategy was to match our retail assets with generation assets ... To only have a retail business in New Zealand was not an acceptable end point."

Reforms by the previous National Government prevented vertical integration in the electricity sector, forcing the split of lines business from retail. State-owned companies held most of the generation assets until Contact Energy was sold.

TransAlta bid unsuccessfully for a major stake, and Labour campaigned on ceasing asset sales. That left TransAlta NZ selling 7500GWh of power a year but generating only 4363GWh and having to buy the rest mainly from the three state generators.

- NZPA