Mercury supports the Government’s focus on energy security and ensuring a reliable electricity system through dry years.

We’ve seen today’s announcements and are working through the available detail to understand any potential impact on Mercury. We will engage constructively on MBIE’s consultation on the proposed Winter Energy Reliability Obligation.

We believe lower-cost options, including modest renewable overbuild, demand response and flexible backup, should be fully tested.

LNG is an additional fuel source the government is procuring as insurance for the electricity sector and to support gas users. Given this, we think a broad-based levy is the fairest way to fund a terminal, in line with BCG's 'Energy to Grow' report recommendations.

Mercury Chief Executive, Stew Hamilton

We support the Government taking a practical approach to energy security and keeping all workable options available to manage risk and deliver affordable energy during the transition to more renewable generation. 

We think the best role for LNG is as a short-to-medium term ‘insurance’ product to back-up domestic gas supply and contribute to dry year electricity fuel reserves. LNG importation should occur alongside other mechanisms to improve the gas market, including more onshore drilling of existing fields and exploring biogas and gas storage. 

Given the system-wide security LNG would support, we believe a broad-based levy would be the most appropriate way to fund an LNG terminal, as was recommended by BCG in its recent ‘Energy to Grow’ report.

We look forward to seeing more detail on the proposed arrangements and how they will support secure and affordable energy supply for New Zealand.

Mercury Chief Executive, Stew Hamilton

Emergency Services were called to a fire at one of Mercury’s wind turbines at the Tararua Wind Farm, in Manawatu, at around 5pm on Sunday evening.

The fire was contained to a single turbine and a small number of minor ground fires, all of which were quickly extinguished. There was no one near the turbine at the time and no injuries.

Half of the wind farm was taken offline while the affected turbine is removed from service. The wind farm (excluding the affected turbine) was returned to service before 10pm Sunday night.

The cause of the fire is being investigated in the coming days. Mercury thanks the member of the public who alerted emergency services.

Mercury spokesperson

We need to review the report and proposals in detail, but we are pleased to have clarity on the Frontier Economics report outcomes and the government’s decisions.

We support the general intent to increase energy security and boost existing markets, while enabling market-led responses.

We have $1billion currently invested in three major builds and premium development prospects.

Our key focus is delivering reliable electricity at lowest overall cost. We look forward to working constructively with Government and industry to ensure the proposed solutions deliver the best outcomes for consumers.

Mercury Chief Executive, Stew Hamilton

Mercury acknowledges this decision and has already begun the phased roll out of “time-of-use" solutions. These solutions give customers greater control over their energy spend and encourage them to shift their energy use away from peak periods, which, in turn, helps manage load on the national grid. 

Giving customers more control over their energy consumption and costs is good for New Zealand as we move through the energy transition. That’s because it helps us get the most out of the existing electricity assets and sends the right price signals to customers considering investment in technologies (like solar and batteries). 

Ultimately that keeps costs lower for everyone.

Mercury Chief Operating Officer – Customer, Craig Neustroski

Ensuring security of supply is of vital importance for New Zealand’s energy system, and Mercury is pleased to be working with the sector on solutions that progress this.  

For our largely renewable electricity system to deliver on the big opportunity – shifting our broader energy system to more renewables – the system needs to be secure and affordable to give others the confidence to switch to electricity. 

Declining gas supplies and New Zealand’s dry year risk have highlighted the supporting role that thermal fuel is likely to continue to play over the coming years to help us navigate the energy transition efficiently. This is especially true for those periods where the weather doesn’t co-operate as we’d like. 

We’re pleased to be working with Genesis and others to support the continued operation of the Huntly Power Station’s Rankine Units and a strategic fuel reserve from 2026. This will help ensure we can continue powering New Zealand as we add more renewables to the system. 

This is a complex challenge and will require a range of solutions. There’s a raft of other activity underway to help deliver secure and affordable electricity, such as building more generation at historic scale, and pace.  

There is currently 2.2TWh of generation development under construction – about 5% of 2023 supply. Mercury is building half of this (1.1 TWh currently in construction) representing a $1 billion commitment to new renewables. We have plenty more to go – and plan to deliver a further 3.5 TWh by 2030. 

Mercury Executive GM Wholesale - Tim Thompson

We appreciate this is a challenging environment for many homes and businesses, with cost pressures across the board. We are doing everything we can to support those who need it as we go through the shift to a more renewable system.

That’s why we are disappointed to hear that any business would feel unable to talk to us. We urge anyone going through difficulty to get in touch if we’re their supplier. We have a range of ways that we can help.

While we haven’t had an opportunity to see or discuss this survey, we remain eager to talk with Auckland Business Chamber and Northern Infrastructure – it’s important we all work together on what is a shared ambition for an affordable and accessible electricity system.

Mercury Executive GM Wholesale - Tim Thompson

Action is needed if New Zealand is to continue to have a secure and affordable energy supply as our system transforms.  

In our view, the EA’s priority should be to boost the existing hedge market. We believe this would be the most effective way to address issues identified by the Task Force (such as access to shaped hedge products and competitively priced risk management contracts).    

Conversely, we don’t think the proposed level playing field measures would effectively address the issues identified. They would also be difficult to implement and could have significant knock-on effects, which could ultimately result in greater costs for consumers and the delay of much needed further investment.  

See Mercury's submission on level-playing field measures.

Mercury Executive GM Wholesale - Tim Thompson

Giving consumers more control over their energy consumption and costs is good for New Zealand. That’s because it helps us get the most out of the existing electricity assets and supports the right investments by households in new technologies (like solar and batteries). Ultimately that keeps costs lower for everyone.

We like that the Task Force’s work does this in a way that preserves our competitive retail market through recognising the importance of retailers having flexibility to create and offer plans that meet consumers' diverse needs.  

We don’t think it’s a good idea to force retailers to pass through distribution costs in specific ways or mandate certain price plans as that would limit competition, innovation and our ability to offer a broad range of plans and products.  

See Mercury’s submission on package 2A, 2B and 2C.

Mercury Chief Operating Officer – Customer - Craig Neustroski

We acknowledge the change to long-term management of the invasive freshwater clam, Corbicula fluminea, under the Freshwater Biosecurity Partnership Programme. 

Mercury conducts regular maintenance checks of its hydro power stations along the Waikato River, including at Karāpiro where the clams are prevalent.   

Our checks show the clams have not damaged our hydro stations, which continue to operate normally, generating renewable energy for the country. 

We continue to follow the Check, Clean, Dry procedure recommended by the Ministry for Primary Industries for decontamination of any gear and equipment that has been used in the Waikato River to prevent the spread of golden clams. 

We are committed to working with the Freshwater Biosecurity Partnership Programme, Biosecurity NZ and Waikato River iwi to share information and expertise so we can monitor and track the clam. 

Mercury Head of Operations – Generation, Matt Kedian

We want anyone who is struggling to get in touch with us, as we have a range of ways we can help.

Supporting customers in hardship is one of our biggest priorities, and we have a specialised team who are entirely dedicated to this. The team work very closely with community to make sure that the solutions we’re delivering are tailored and lasting for these people.

In addition to working with community we also provide direct financial support through things like bill credits, tailored payment solutions and for our customers who we know are doing it really tough, we have excluded them from this increase and frozen their prices.

We also support several ERANZ programmes including a credit scheme for those most affected by the low fixed user charge tariff phase out. Since 2024 we’ve applied over 3,500 credits worth about $445,000 in total to low use customers who need help during the phase out. Where this is not enough, or where a customer is not eligible, our dedicated Here to Help team will apply credits or additional support as needed.

As a result of all this work, we’ve had no post-pay credit related disconnections for customers in hardship since June 2024 and we’re continuing to make progress in this space.

Looking beyond our own customers, we also provide hedges to social retailers (Nau Mai Rā and Toast Electric) at rates that enable them to deliver on their goal of eliminating energy hardship, which is a goal we share.

Mercury Chief Operating Officer – Customer, Craig Neustroski

We are keen to work with the Taskforce so that we’re maximising benefits for consumers while keeping red tape and compliance costs down.  

New Zealand is one of the most competitive markets in the world and we all want to see that continue – the 40 plus retailers we currently compete with keep us sharp. That includes pricing any retailer who comes through our doors - in providing our offers we consider scale, length of deal and shape among other factors.   

We agree that making risk management options more easily available is key to keeping competition strong. That’s good for independent generators and retailers because it gives them confidence they are getting the best deal and manage their risks. Ultimately, that is good for households and businesses all around New Zealand. The devil is always in the detail and the team are still working through whether this proposal enables this and supports more generation being built. 

Alongside the Taskforce’s work, it’s critical we maintain a laser focus on security of supply and delivering more renewable energy infrastructure, which is where we can help get real traction electrification and economic growth. That includes delivering on the $1 billion investment we’ve committed to new renewables, and the three renewable builds we currently have underway. 

Mercury Executive GM Wholesale, Tim Thompson

From April, the overall electricity bill increase for Mercury residential customers will be approximately 9.7% on average. This primarily reflects increases in lines and transmission charges due to rising costs and level of investment in infrastructure required, in line with the Commerce Commission’s price path re-set for the next 5 year period. It also reflects the rise in the cost of wholesale electricity and other costs.

This is an important contribution to a reliable, safe and secure electricity now and in the future.

We acknowledge the impact this will have and encourage anyone who is struggling should get in touch with us, as we have a range of ways we can help.

We’ve excluded customers who are doing it really tough from this increase and frozen their prices. We also provide direct financial support through things like bill credits, tailored payment solutions and a credit for those most affected by the low fixed user charge tariff phase out, and our dedicated team work with community to ensure solutions are tailored and long-lasting.

As a result of all this work, we’ve had no post-pay credit related disconnections for customers in hardship since June 2024 and we’re continuing to make progress in this space.

Looking beyond our own customers, we also provide hedges to social retailers (Nau Mai Rā and Toast Electric) at rates that enable them to deliver on their goal of eliminating energy hardship, which is a goal we share.

Mercury Chief Operating Officer – Customer, Craig Neustroski

Mercury is pleased to be working with the sector on potential solutions that will take us a significant step towards helping address security of supply challenges.

For our largely renewable electricity system to deliver on the big opportunity – shifting our broader energy system to more renewables – the system needs to be secure and affordable to give others the confidence to switch to electricity.

Near term, there are challenges to security of supply, including a shortage in domestic natural gas and prolonged dry weather leading to lower hydro lake levels. This means that thermal fuel is likely to continue to play a supporting role, particularly in dry years where our hydro lakes are low.

Over the medium term, we know we need to work on improving security of supply so we can continue to bring on more intermittent renewables alongside increasingly volatile weather and growing demand.

We’ve been working with Genesis and others to explore Huntly Power Station’s role in ensuring we’re able to keep powering New Zealand around the clock as we add more renewables. The commercial structure is being worked through, including key terms such as pricing and cost allocation.

This is a complex challenge and will require lots of different solutions. There’s a range of other activity underway to help deliver secure and affordable electricity, such as building more generation quickly. At Mercury, we have committed over $1 billion to new renewable projects in the past two years and have three projects currently underway, with more in the pipeline.

Mercury Chief Executive, Stew Hamilton

Mercury is aware of an online video showing a person jumping from the Karāpiro Hydro Dam into the Waikato River near the hydro station.

The company wanted to be clear that it was irresponsible to promote the jump as anything other than incredibly dangerous. 

Mercury does not object to people trying extreme sports, but it’s crucial for people to understand that a working hydro dam can be a dangerous environment, posing significant and often unpredictable risks to safety. It is not a place for recreation.

Mercury has reported the incident to police and made a request to an online platform to remove the video.

It has also served a trespass notice on the person who made the jump, preventing the person from visiting the hydro dam again.

A reminder that the Waikato Regional Council’s Dam Safety Zones prohibit swimming, diving and boating within 200m of a hydro dam structure.

Mercury Executive GM - Generation (Acting), Tomas Toomata