Meridian chief thinks new government’s plans positive

The incoming government’s commitment to convert the government car fleet to electric by 2025/26 where practicable is positive, Meridian Energy chief executive Mark Binns says.

It’s among coalition proposals that are also good and which Meridian is keen to engage in, Binn says in speech notes for today’s agm, the NZ Herald reports.

“We now have a new government with different priorities and approach to the previous one. I have read the coalition agreement and there are aspects that will have implications for the electricity sector,” he says.

He notes the coalition is committed to an independent Climate Change Commission to advise on the setting of carbon reduction targets and hold the government accountable for delivery.

“Meridian believes that climate change is real and tangible action over the next year should be welcomed by shareholders, given Meridian’s commitment to New Zealand growing renewables,” Binns says.

The company’s also supportive of the new government’s emphasis on water quality and Binns hopes that within a year the government’s approach to the issue will be better known.

He also expects the government will have completed its full-scale review into retail power pricing, saying competition has kept electricity prices low and that that is likely to continue.

“If the government wanted to look at some sacred cows for efficiency gains, it may pay them to look at the number of network companies in New Zealand – 29 compared to five in the state of Victoria, with a comparable population,” he says.

Binns says the level of inefficiency such a number drives into electricity costs is significant.

He’s looking forward to seeing Meridian’s growth initiatives in Australia, the United Kingdom and Europe develop, given low demand growth in New Zealand.

Binns stands down at the end of the year and will be replaced by retail general manager Neal Barclay.