NEW ZEALAND ENERGY 2006

NZ utilities face difficult environment

GLOBAL ratings agency Fitch Ratings says the outlook for New Zealand energy utilities has worsene...

NZ utilities face difficult environment

The New Zealand Press Association reports Carolyn Martin, head of Fitch's utilities team in Sydney, as saying the agency had placed the sector on a negative outlook in 2005 and the situation had only worsened so far this year.

The industry was facing gas supply shortages later this decade, an uncertain environmental outlook due to the government scrapping its proposed carbon tax, and delays in gaining approval for upgrading the national electricity grid.

There was also the threat of government intervention through such bodies as the Commerce Commission.

Balancing security of supply, price and environment concerns would be difficult, according to Martin.

Last week ratings agency Standard & Poor's downgraded its outlook for Transpower from stable to negative after the Commerce Commission’s threat to regulate its pricing.

These revisions sound a warning to New Zealand’s energy network companies that their ratings may be weakened through any government intervention in their businesses.

The Commission is next month due to decide whether to impose restrictions on the operations of national electricity grid owner Transpower, major networks company Vector and small Hawke’s Bay electricity lines company Unison.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry