Energy companies clash

Meridian Energy is refuting complaints about its advertising by independent power company Electric Kiwi, which alleges Meridian is ‘greenwashing’.

Electric Kiwi has complained to the Commerce Commission and Advertising Standards Authority about recent Meridian advertisements around renewable energy and saving the planet on social media, YouTube, a billboard and its website.

It alleges the advertisements about generating power from 100% renewable sources and only generating electricity through wind, water and sun are incorrect because Meridian has an agreement with Genesis Energy to use power from its Huntly gas and coal fired thermal plant as required, the NZ Herald reports

However, Meridian says its arrangement with Genesis is a financial contract and it does not take electricity from the company.

Meridian signed a four-year “swaption” contract with Genesis applying from January 2019 allowing 100mW to be available year-round, with an additional 50mW available in the winter (April to the end of October).

The contract covers periods of low inflows to hydro lakes that could compromise electricity supply security.

Meridian owns wind and hydro power stations, and a Meridian spokesperson told the Herald it stood by its advertising claims.

“We do not buy electricity from Genesis, we do not take or use energy from Genesis and we do not call on Genesis for power. When we say we call load under the swaption we mean we call on our counterparty to meet their financial commitments to us – it is essentially a form of insurance against wholesale price risk.”