Orion delivers on targets

Central Canterbury electricity distribution company Orion has announced a $48 million after tax profit for the year ended March 31.

That’s $6m higher than its statement of intent target, and the same as last year’s profit.

Orion has also announced progress on preparing for the energy industry’s future.

“As New Zealand addresses climate change and transitions to a low-carbon economy, the electricity sector is a critical part of the solution,” Orion Group chief executive Rob Jamieson says.

“We’re one of the first lines companies in New Zealand to install street level monitoring of energy usage patterns so we are prepared for the take up of EVs, and home energy generation, storage and sharing technology.”

While achieving targeted service levels for customers, Orion also delivered $47m in dividends to community shareholders.

Net profit was boosted by a $5m deferred tax adjustment following the government’s decision in March to reinstate tax depreciation on commercial and industrial buildings as part of its support measures for businesses facing COVID-19 impacts.

Orion reduced its prices by an average 6% from April 1.

Jamieson says Orion staff and contractors continued to operate well during the COVID-19 pandemic, with very few outages during the lockdown.

“Orion had thorough plans in place that allowed us to adapt quickly, and we worked hard to sustain a very reliable service during all alert levels. We co-ordinated with other electricity network operators across the South Island and New Zealand.

“With so many people working from home and home schooling, it was important for everyone to keep the power on.”

Commercial power use dropped during lockdown, but residential use was up.

“We saw an overall reduction from the usual volume of power used of around 10% at alert level 4,” Jamieson says.

“That moved to 4% at level 2. Power consumption across the region has now returned to usual levels at this time of year.”

Jamieson says it’s an exciting time to be part of an industry that’s playing a vital role in building New Zealand’s sustainability.

“We’re also leading the establishment of an Energy Academy for the industry that focuses on developing the skills and capabilities we’ll need in the future.