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  • Transform

    the way we live

    Genesis Energy is transforming itself into an energy business with its customers at the centre of the company.

    How are we doing this? Simple. We asked our customers what they want. They told us they want tools and incentives to manage their energy use better. They want to save energy and save money. They want to deal with an energy company that is relevant and easy to communicate with.

    So we have shifted our focus. While we maintain a generation development team, we are no longer so concerned with building new power stations. We are more focused on getting closer to our customers. We are finding the best tools in the world to help our customers shift their consumption to lower price periods, control their energy use with the latest technology and, ultimately, save money.

    The rapid adaption of smart phones and tablets has already given energy consumers the expectation that they should be able to control and enhance many aspects of their lives via their mobile device. Control of their energy use should be no different.

    So we have installed Advanced Meters in 268,000 customer properties. Advanced Meters are just the beginning. They are the hardware and data providers. The real customer benefits come with the information and energy management tools built on the back of the data platform.

    In 2011 we introduced Energy Usage – a customer portal on the web that gave our customers access to their hourly, daily and monthly electricity usage derived from the Advanced Meter data. The next step was the release in March 2012 of My Meter, the same data now available on the customer’s smart phone. With this iPhone and Android application, customers can see what they are using and how they are tracking against their monthly average and against pre-set budgets.



    Find out how we're transforming the way we live.

  • Transform

    the neighbourhood

    Having provided more than half of our electricity customers with free access to their consumption data via the web or smart phone, the next step from Genesis Energy was to start testing and trialling new technologies and new tools with customers.

    We’ve worked hard to identify technologies emerging worldwide that we feel are set to change the face of energy management in the home and business. To test these innovations in local and real conditions, and not in an engineer’s lab’, we created an advanced energy neighbourhood in Auckland called Tomorrow Street.

    We invited 15 households on the North Shore to partner with us and be our research assistants. They represent a mix of New Zealanders, householders and house types. The Tomorrow Streets live in typical older Auckland bungalows, cottages and villas – some renovated, some not. Our first action in Tomorrow Street was to conduct comprehensive energy assessments on the houses. Unsurprisingly, we found that most of the 15 houses were poorly insulated and leaked energy. We fixed that with insulation and then installed the HomeiQ energy management system we have sourced from GreenwaveReality in the United States.

    HomeiQ is retrofitted between the wall socket and an appliance. It communicates wireless to a central control box and is connected to a web portal. The system allows householders to monitor and control the energy usage of individual devices and appliances room by room and throughout the home. Residents of Tomorrow Street are using smart phones and tablets to switch appliances on and off remotely, programme them all to certain modes and to track their energy consumption.

    Tomorrow Street residents are also trialling the combination of other energy saving appliances such as solar hot water, heat pump hot water and new smart fridges.

    Tomorrow Street is a new method of involving customers in our business. They have the opportunity to test new products and provide feedback on how to make them simpler to use. Ultimately, if the products in Tomorrow Street work and provide meaningful savings for the residents, Genesis Energy will be more encouraged to roll them out to the mass-market.

    Find out how we're transforming the neighbourhood.

  • Transform

    our communities

    While collaborating with customers directly through initiatives such as Tomorrow Street may be a new concept for Genesis Energy, engaging with our communities has been part of the Company’s culture and values for many years.

    Over the past year the Company has continued to support many community and environmental organisations as we seek to engage and contribute to better social and environmental outcomes.

    Genesis Energy’s community investment strategy has been refined in the past 12 months to focus on addressing the various impacts of its operations and to help develop solutions that improve community wellbeing, local economies and environments.

    One of the strengths of Genesis Energy is the scale, breadth and depth of our community engagement and investment activity. Successful community engagement programmes require not only breadth and depth but longevity.

    Genesis Energy created and has supported the Genesis Oncology Trust for almost a decade. The Trust also enjoys the support of 80,000 Genesis Energy customers. Into its eighth year, the Trust awarded 62 grants totalling $1,150,000 to those working on the front line in the fight against cancer.

    In education the Company created and continues to grow the Schoolgen solar education programme. In the period under review, four schools in Christchurch and Lake Tekapo township were selected to receive 2KW photovoltaic panels. Lake Tekapo School also received a battery system which will enable the school to operate independently of the National Grid and act as the district’s regional emergency centre if required.

    The whio, or native blue duck, is not only an endangered species but is an important indicator of the health of our rivers, many of which feed water into Genesis Energy’s hydro schemes. In September 2011, after a long-running and successful mitigation programme to provide secure sites for whio in the central North Island, Genesis Energy and the Department of Conservation entered into a five-year partnership to create the National Whio Recovery Programme. This programme, dubbed Whio Forever, will create eight predator-controlled security sites in the North and South Island and each will target to house at least 50 pairs of whio.

    Find out how we're transforming our communities.

    Our community involvement continues to grow

  • Chairman's Report

    Hon. Dame Jenny Shipley

    I am pleased to submit to you Genesis Energy’s Annual Report for 2011/2012, a financial year in which we demonstrated our business strategy – based on customer focus and asset optimisation – is delivering sustainable results, against a backdrop of volatile market conditions.

    Our long-term business strategy is unique in New Zealand. We are focused on transforming Genesis Energy into the leading New Zealand energy company with our customers at the centre of the business. The Company plans to grow its fundamental value through optimising margins, reducing customer churn and using innovation throughout the business to achieve this.

    While the Company is developing a range of new lower-cost and low-emission generation options and successfully gained resource consents for the Castle Hill Wind Farm on 11 June 2012, it is taking a more holistic approach to business development. The innovation and business development team is investigating a wide range of development options on both the supply and demand side of the business.

    The Company achieved three significant milestones in the financial year 2011/2012. Firstly, the integration of the Tekapo A and B hydro assets (acquired in June 2011) into our generation portfolio was completed with full operational control of the stations moving to Genesis Energy in August 2011.

    Secondly, we launched the Tomorrow Street advanced energy neighbourhood initiative. Tomorrow Street is a demonstration of our commitment to get closer to our customers and to develop a pipeline of innovative products and services that deliver true customer value.

    Thirdly, and indicative of the Company's approach to stakeholder engagement and resource consenting, Genesis Energy secured renewed resource consents for the Huntly Power Station without a formal hearing being required or an appeal to the Environment Court being registered.

    Strong financial performance

    The Company is pleased to report a Net Profit After Tax of $90.25 million compared to the Net Loss After Tax of $16.6 million in 2010/2011. This is a strong result that endorses our strategy to derive the greatest value and efficiency from a generation fleet that is matched to our customer demand profile.

    Revenues increased 24 per cent from $1,834.5 million to $2,270.2 million and Earnings before net finance expense, income tax, depreciation, amortisation, fair value changes and other gains and losses (EBITDAF) were up 34 per cent from $292.7 million to $392.6 million.

    Revenue increased primarily due to higher generation volumes, higher wholesale electricity revenues, high gas sales in both the retail and wholesale markets and a stronger contribution from the Company’s 31 per share of production from the Kupe Oil and Gas Field. The gains in EBITDAF reflected higher wholesale prices and generation volumes, which were partially offset by higher wholesale electricity transmission and distribution costs and the costs of selling surplus gas contracted. arrangements with Kupe.

    The improved financial performance was achieved against a backdrop of volatile wholesale electricity market conditions. The latter part of the year was characterized by low water inflows and low hydro storage lake levels. However, the financial year ended with a near return to average storage as several large rain events impacted both the North and South Islands at the beginning of winter. The variable weather also impacted our business as temperatures fluctuated from extreme cold to warmer-than-average conditions at times during the year.

    Wholesale market conditions driven by hydrology and fluctuating demand are largely beyond management control. Therefore, the strategy of focusing on building long-term value for the business by creating value for our customers remains sound.

    At the same time, the Company has the generation capacity and fuel reserves to capitalise on opportunities in the generation market. The geographic spread of its generation assets and diversity of fuel supply added to the Company’s ability to respond to varied market and weather conditions, and has underpinned the Company’s strong business performance.

    In a year of intense competition for electricity customers, Genesis Energy has held its market share in the retail electricity market and experienced a slight decrease in the retail gas market. Its bottled LPG business continues to grow year on year with an annual customer number increase of 45 per cent.

    Board and people

    I would like to extend my gratitude to my fellow Directors, and in particular to the three directors who retired during the year: Nicki Crauford, Barbara Elliston and Denis Wood. During the year the Board met 12 times and participated in several workshops to consider the strategic future of Genesis Energy.

    In order to develop and implement the Company's strategy, the senior management team has been augmented with new, high-calibre executives.


    The future of Genesis Energy is assured. The Company enjoys strong and diversified earnings growth, has a highly disciplined approach to capital expenditure, well managed risks and a sound balance sheet with a BBB+ rating by Standard and Poor’s.

    Genesis Energy, as one of the four State-owned energy companies that the Government has indicated will be partially sold down in the near future, continues to engage as appropriate with Treasury and the investment community in readiness for such as event and is well advanced in its preparation for partial listing. Genesis Energy remains committed to its current business plan and strategic direction with the intention of further building shareholder value.

    Genesis Energy is pursuing a number of opportunities and innovations which will expand the diversity of the Company and provide stable and consistent earnings growth in the medium-to-long term.

    Dame Jenny Shipley DNZM


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  • Chief Executive's Report

    Albert Brantley


    “Transformation” is the main theme in this annual report and is also central to our business activities in the past year as we position ourselves for the future. We have been on a transformative path for the past 18 months but our journey towards becoming the leading New Zealand energy company is far from complete.

    The transformation is about thinking from a demand-side point of view rather than from the supply-side, and this change applies to our generation plant and electricity traders as much as it does to marketers and customer service representatives.

    The shift in mindset is about giving our customers the ability to make choices and the tools to control their energy consumption and save money.

    It is also about providing a supply of energy to our customers at the lowest cost. We are determined to run our generating assets as efficiently as we can and, if we can purchase from others in the wholesale markets cheaper than it costs to run existing or build new plant, we will.

    In April 2012, Genesis Energy was voted Utility Gas Provider of the Year and our subsidiary, Energy Online was voted Electricity Provider of the Year in the Roy Morgan Customer Satisfaction Awards New Zealand 2011. As this is an independent award based on customer research, this was particularly pleasing and indicated that our focus on customer experience is heading in the right direction. Another positive indicator was the 93 per cent customer satisfaction rating at the end of June 2012.

    Holding market share

    The electricity and gas market for domestic and commercial users has been characterised by intense competition between suppliers. New Zealand has one of the highest electricity customer churn rates in the world. Our business target is not to acquire customers for number’s sake, but to improve margins and to grow or at least maintain market share.

    Genesis Energy’s electricity and gas market shares at 30 June 2012 were 26.6 per cent and 42.7 per cent respectively.  Market shares for this period are slightly lower than the same period last year (electricity at 26.8 per cent and gas at 43.5 per cent). Our total customer churn for the year was 18 per cent.

    Innovating for customers

    We have embarked on installing Advanced Meters into our electricity customers’ properties – we have now more than 268,000 such meters installed in the properties of about 50% of our customers. The Advanced Meter roll-out provides the platform for the customer-focused strategy, much like a cell phone and network provides a platform for customer applications.

    All customers with Advanced Neters can access their hourly, daily and monthly Energy Usage data through the My Account portal.

    In a new collaboration with our customers, we are testing homeiQ in New Zealand households in a project called Tomorrow Street. Tomorrow Street is a way of involving customers in our business and giving them the opportunity to test things and tell us if they work, how we can make them simpler and most of all, if these innovations help them save money and energy. Tomorrow Street will be the home of some of the things we think the future of energy holds for New Zealand. Once we demonstrate the usefulness of those innovations, we will roll them out to the balance of our customers.

    Optimising our portfolio

    Genesis Energy maintains and operates its flexible, diverse and strategic generation asset portfolio on a commercial basis to maximise profitability and to meet customer needs. The geographic and fuel-type diversity of our portfolio is enabling the Company to operate a balanced business model and deliver consistent results despite the variety of trading conditions.

    During the year under review, our total generation volumes increased 30 per cent and thermal generation from the Huntly Power Station was up 29 per cent. Renewable generation increased 32 per cent, reflecting a full year’s contribution from Tekapo A and B. The average wholesale price we received per megawatt hour increased 53 per cent from $59.67 to $91.10.

    The addition of new baseload renewable generation has continued to impact the market, resulting in a significant excess of thermal capacity and the continued declining utilisation of the older Huntly Units 1 to 4, notwithstanding freequent dry conditions.

    In February 2012, we announced that Huntly Unit 3 would be placed into long-term storage from the end of November 2012. The Company intends to keep the remaining Huntly Units available to meet market needs for as long as they are commercially valued.

    A second Huntly Unit remains scheduled for entry into long-term storage in December 2014. However, we will maintain a degree of optionality over the storage schedule for the second Unit to respond to any changes in anticipated supply or demand.

    Positioned for future

    On 27 April 2012, Genesis Energy was granted replacement operating consents for the Huntly Power Station site by the Waikato Regional Council for a further 25 years. No appeals were received against the Council’s decision. Achieving the renewed operating consents for Huntly represents a significant achievement, as these consents authorise the full present output capacity from the site, which will support its continued long term role in supplying firm and controllable electricity.

    Genesis Energy has a number of new generation developments in the pipeline, the highest profile of which is the Castle Hill Wind Farm project. Resources consents for the project were announced by independent commissioners on 11 June 2012. Subsequently, the Company has appealed certain conditions within the consents to the Environment Court, as have others.

    Operational monitoring at the Tekapo Canal has been undertaken as a continuation of activity by Meridian Energy, previous owners of the Tekapo assets. This monitoring has indicated that the canal has deteriorated since August 2011, with new leaks appearing.

    The Company views the Tekapo Canal remediation as a priority and has allocated in excess of $125.0 million for remediation work to address long-term stability and serviceability of the canal, as well as known occurrences of any leakages. The remediation programme is expected to be completed over a two-year period, and will involve two 14-week outage periods for the canal, the first commencing in January 2013.

    Genesis Energy’s 31 per cent interest in the Kupe oil and gas field provides the Company with a strategic position in the gas industry and an important advantage when contracting fuel. This upstream integration strategy is consistent with the strategic approach of energy company peers in Australia and United Kingdom. The Company has contracted to acquire 100 per cent of the Kupe gas supply.

    Kupe also plays a significant role in the Company’s overall financial performance delivering strong cash flows and an excellent return on investment. Kupe earnings provide the Company a potential buffer against adverse hydrological conditions and assist in reducing potential performance volatility.

    Our People, Stakeholders and the Environment

    The health and safety of employees remains the number-one priority within Genesis Energy. A strong safety culture and relentless safety leadership in Genesis Energy are key planks that support the Company's zero-harm philosophy. It is pleasing to report a 76 per cent decrease in our Total Recordable Injury Frequency Rate (see Our Workplace for details).

    While this is a significant improvement, we will be satisfied only when none of our people are injured at work. We have recently introduced Zero Incident Process (“ZIP”) training for all staff to expand consideration of safe working practices to all the Company’s activities.

    Genesis Energy intends to continue to support and add value to the communities in which it operates. This will include localised community sponsorships and initiatives. The Company also has a range of broad-based community initiatives which include the Genesis Oncology Trust, Schoolgen and support for four Curtain Banks.

    During the year under review we agreed upon a major partnership with the Department of Conservation (DOC) to support and fund a five year National Whio (Blue Duck) Recovery Programme. This was the first such agreement that DOC has signed with a commercial entity and indicated the high quality relationship between the Company and DOC.

    Genesis Energy seeks to have proactive and constructive relationships with iwi where we operate. Like all of the Company’s relationships, its engagement with iwi is based on trust and mutual respect. A joint funding application with Huntly iwi to the Waikato River Authority to clean up Lake Waahi was an example of the close relationship between Genesis Energy and iwi.

    Market Outlook

    The 12 months to the end of June 2012 have been very busy months for Genesis Energy as we transform the Company into a leading energy business. In all sectors of the business, projects are underway to improve customer experience, reduce our costs, improve margins and create both supply and demand-side growth opportunities.

    Low growth in electricity demand is expected until the end of the 2012 calendar year, with modest growth expected in 2013 and an improved outlook beyond. Strong levels of competition in the energy retail markets are expected to continue with high rates of customer churn over the near to medium term. Genesis Energy is working hard to reinforce customer loyalty and protect its market share.

    The financial and business performance of the Company in 2011/2012 was extremely satisfying. It has been a strong year for the business and we have improved performance against a wide range of measures. Genesis Energy is well positioned to deliver similar and consistent earnings next year and is well positioned for the future.


    Albert Brantley

    Chief Executive


    Albert Brantley

    Chief Executive Officer

  • Contact us with your feedback


    We appreciate and value your feedback; if you have any comments or suggestions, please use the feedback form (above right) or contact Genesis Energy’s Public Affairs Manager on +64 9 580 2094

    If you require a printed version of the Genesis Energy 2011/12 Annual Report please email

  • Board of Directors

    Chairman - Rt Hon Dame Jenny Shipley DNZM

    Dame Jenny has been Chairman of Genesis Energy since November 2009. She is Chairman of Momentum Consulting Group Limited, the Financial Services Council, Seniors Money International Limited and Mainzeal Construction. She is also a director of the listed fortune 500 company, China Construction Bank. She is a Director of Trans Tasman Resources. Dame Jenny was Prime Minister of New Zealand from 1997 to 1999 and in the preceding seven years she was a Senior Minister in the New Zealand Government and a driving force in the successful decade of economic and social reform in New Zealand. She retired from New Zealand politics in 2002. She is Chair of Global Women NZ and Co-Chair of Women Corporate Directors. She is an active member of the World Women’s Leadership Council and is Vice President of the Club of Madrid, a group of former leaders who promote democracy and transparent economic development, globally.

    Deputy Chair – Joanna Perry MNZM, MA Econ (Cantab) FCA (ICAEW), FCA (NZICA)

    Joanna Perry is a professional director and her current appointments include Director of Kiwi Income Property Limited, Trade Me Group, the Co-operative Bank, Rowing New Zealand and Independent Adviser to the Board of Tainui Group Holdings Limited. She is also a member of the Interpretations Committee of the International Accounting Standards Board.

    Graeme Milne BTech (Biotech) (Hons)

    Graeme Milne is a professional Waikato-based director. During his career Graeme was the CEO of a number of companies including what was at the time the largest dairy company in New Zealand and also, for a period what was the largest meat company in the country, the NZX listed Richmond Ltd. He has worked at various times in Germany, the UK and Australia. Graeme was a director of listed lines company Horizon Electricity Distribution Limited. for seven years prior to joining the board of Genesis. Currently Graeme is the Chairman of several New Zealand-based entities, including Synlait Milk, New Zealand Pharmaceuticals, and the Waikato District Health Board, and holds directorships in others including Farmers Mutual Group.

    John Anthony Dell BCom (Hons), CA

    John is a professional director and is an active investor in high growth businesses. John has significant experience in executive finance and strategic management having previously held executive positions as Chief Financial Officer and Chief Executive Officer of Tenon Limited (formerly named Fletcher Challenge Forests Limited) and as Chief Financial Officer of Air New Zealand Limited. Prior to his corporate roles, John worked for international accountancy and consultancy firm KPMG. John’s current Board appointments include Viridian Glass, Higgins Group Holdings, Perpetual Capital Management, EGS Investments (formerly Euroglass) and Unimarket.

    Rukumoana Schaafhausen LLB

    Rukumoana has practised as a lawyer for a number of years specialising in the area of governance. She previously worked for a large-scale property development company. She is an executive member of  Waikato-Tainui Te Kauhanganui Incorporated, Director of Regional Facilities Auckland Limited and Trustee for the New Zealand Centre for Social Innovation.

    John Leuchars ME, BCA, FIPENZ

    John is a professional company director. He was a consulting engineer who held director and managing director positions in international consulting engineering companies for 30 years. These included being Managing Director of Connell Wagner (NZ) Limited (now Aurecon) and of Connell Mott MacDonald Limited, London. He has experience in a broad range of industries including the design of power-generation projects in a hands-on design role or at a governance level. He is currently a Director of New Zealand Rail Corporation (KiwiRail).

    Andrew Clements BCom

    Andrew, known as Clem, is an investor and professional director. He is currently Chairman of Orion Health, New Zealand Assets Management, Amadeus Asset Administration Limited and Revera. He is a director of NZX-listed Ryman Healthcare and The New Zealand Refining Company and RDGP. He is a member of the IOD. Clem was Managing Director of Emerald Capital Limited, a Canadian-owned investment company, from 1998 until 2008. Prior experience included nine years with Goodman Fielder Wattie Limited in various financial and general management positions in New Zealand and Asia, following corporate money market and foreign exchange positions in New Zealand and London.

    Robert Fisher ONZM LLB DIPTe - Retired 20 August 2012

    Rob was engaged under contract to the Auckland Transitional Agency (ATA) as General Legal Counsel. Rob is General Counsel of Watercare Services Limited. Prior to taking up the position with ATA, Rob was a partner in the Local Government and Environment workgroup of Simpson Grierson. He was Chairman of the firm for 10 years until 2009. Rob has provided strategic advice and expertise to both private and public bodies in the consenting of large infrastructure projects.

    Alison Andrew BE (Hons), MBA

    Alison has held leadership positions in industries that include chemicals, dairy, paper and forest products, and oil and energy. She has deep experience in operating businesses, growing businesses and turning businesses around. Based in Auckland she is the General Manager of Orica Chemnet NZ, a role she took on in October 2009 after almost two years as CEO of Lexicon Systems Limited, an Australasian marketing and advertising company. Previously she held a number of senior executive positions at Fonterra Co-operative and Fletcher Challenge.

  • Leadership Team

    Albert Brantley - Chief Executive - BSc, PGeol, FAuSIMM

    Albert is responsible for the overall management and strategic direction for all of Genesis Energy’s business interests. He also serves as Chairman of the Genesis Oncology Trust and Chairman of Energy Online. His background has largely been in heavy industry, including oil and gas infrastructure development as well as the mining and power sectors. He has had more than 35 years’ experience both in New Zealand and internationally in technical, operational and senior management positions, concentrated particularly in the power industry over the past decade. He has had considerable experience leading businesses requiring political, regulatory and environmental management, both in New Zealand and overseas.

    Andrew Donaldson - Chief Financial Officer - BMS, ACA

    Andrew is responsible for managing the financial aspects of the Company along with associated risks and strategies. He has had a significant international career in leadership, including executive roles in both New Zealand and the UK, and also serving as a Director on a number of companies. Andrew was previously Chief Executive of Brightstar NZ, the largest mobile logistics and supply chain company in the world, having established their New Zealand operations. Other roles included Chief Financial Officer of Telecom Retail and Finance Director for multinationals such as Tiscali UK and Atlas Venture UK.

    Michael Fuge - Chief Operating Officer - MCom (Hons), BEng (Hons), MIPENZ

    Michael has taken overall responsibility for the operational divisions of the Company, including Energy Management and Customer Experience. In this role, he leads trading, generation and service delivery of energy and energy solutions to Genesis Energy’s customers.

    Maureen Shaddick - General Counsel and Company Secretary - LLB, BA

    As General Counsel, Maureen is responsible for management of the provision of legal services to Genesis Energy and legal compliance and regulatory support. She is the Company Secretary of Genesis Energy and Deputy Chair of the Genesis Oncology Trust.

    Sheridan Broadbent - General Manager People and Transformation - BCom, MInstD

    Sheridan’s role includes the management of information services and business improvement, Genesis Energy’s recruitment, development training, NZQA training, e-learning and performance, employee relationships, payroll services, health and safety, quality systems, remuneration and internal communication.

    Nick Thomas - General Manager Strategy and Business Development - BA (Hons)

    Nick manages business development, strategic and sustainability teams. He is also responsible for driving the strategic direction and execution of the business plan for Genesis Energy. In this role, his team leads the development of new generation, business, product and partnering opportunities for the Company.

    Dean Schmidt - General Manager Corporate Affairs - BA (Hons)

    Dean’s role includes management of Genesis Energy’s government relations, regulatory affairs, public relations, corporate brand, and community investment programmes. He joined the Company in August 2012 from a similar role at Television New Zealand.

    Audrey Scheurich - General Manager Finance - BMS, CA

    Audrey is a member of the New Zealand Institute of Chartered Accountants and was recently appointed the General Manager Finance to lead the financial and management accounting teams supporting the business. For the past seven years Audrey has been responsible for the financial reporting team and has been in senior secondment roles within the business.

    Jamie Reid- General Manager Customer Delivery - CA

    Jamie is responsible for the delivery of the customer experience at Genesis Energy. His role includes the management of all facets of customer service from the Contact Centre and Billing through to commercial relationships with network companies and third party service providers. APPOINTED TO LEADERSHIP TEAM ON 1 JULY 2012

  • Our Customer Innovations


    Our fresh focus on addressing customer needs will generate greater customer loyalty, advocacy and satisfaction.

    New Zealand’s energy sector is a fast changing landscape and Genesis Energy is transforming itself to move ahead of the pack. By becoming an early adopter of energy technology products and smarter services for customers we are creating a robust and exciting innovation programme for the future.

    To support this transformation; systems, processes, capabilities and structures have all been upgraded. We are gaining insights into customer behaviour and using key findings to aid the development of new products and services. Our fresh focus on addressing customer needs will generate greater customer loyalty, advocacy and satisfaction.

    To assist Genesis Energy in delivering the best consumer goods to customers, commercial alliances with proven technology providers will continue to be widened and developed.

    Advanced Meters

    The Advanced Meter rollout provides the foundation for building a customer focused innovation strategy. To support the Advanced Meter installation Genesis Energy has invested in a wide-ranging upgrade of its customer information systems; this has resulted in a more flexible and stable structure to handle the large amounts of data provided by the Advanced Meters.

    At the end of June 2012 there were more than 268,000 Genesis Energy electricity customer households and businesses with Advanced Meters installed.

    Through Advanced Meters, customers now have access to detailed power consumption information. Energy usage can be received electronically and displayed in graphic form. Usage statistics can be shown for the current billing month or broken down to an individual hour. When combined with the financial incentives of a multi rate tariff, this information grants the customer a genuine opportunity to save money by managing power consumption.

    Advanced Meters and the data they supply is a crucial component in delivering further customer focused innovations. These may include identifying, and then notifying customers if their appliances are functioning incorrectly, or the ability to offer customers special deals on energy efficient products and credits on power bills.

    We believe that effective use of Advanced Meter technology will place us in an advantaged position to offer existing customers exciting new products and potential customers a value-added alternative.

    My Meter Smartphone Application

    Launched in April 2012, the My Meter mobile application gives Genesis Energy customers a heads up on how their monthly power bill is tracking anywhere and anytime. My Meter is available for free download to Apple IPhones, IPads and Android powered mobile devices.

    The My Meter app was designed and developed in-house at Genesis Energy and relays the data received from customer’s Advanced Meters. Account holders receive an overview of power consumption, in kilowatt hours at their residential or business address. The application can then expand available data into a graphic display with monthly, daily and hourly configurations for any set period. With this information as reference customers can then modify their usage behavior to conserve power and also gauge the effectiveness of any energy-saving measures.

    Early interest in this useful application has been very strong. Since its release on 27 April 2012 till 30 June the My Meter application was accessed 9,487 times by customers using mobile devices. Phase 2 of My Meter is currently in development.

    Tomorrow Street

    Genesis Energy has researched and identified emerging worldwide technologies that are set to change the face of energy management at the home and business level. To test these innovations in local conditions we created an advanced energy neighbourhood in Auckland’s North Shore called Tomorrow Street.

    The 15 households that make up Tomorrow Street represent a mix of New Zealanders – there are families with children, single occupiers and a few empty nesters. The houses are typical older bungalows and villas, some renovated, some not and with various levels of heat insulation.  

    Each household is trialing a specially designed Home Energy Management System that helps occupants understand how energy is being used around their homes. The system also lets householders monitor and control the energy usage of individual devices and appliances room-by-room. Tomorrow Street residents can use smartphones and iPads to switch appliances on and off remotely, or to programme them to operate at certain times.

    Tomorrow Street is a live testing ground for some of the innovations that will become the future of energy in New Zealand. It’s also a way of involving customers in the business and giving them an opportunity to provide feedback on what works, how things could be made simpler and if these innovations help them save energy and money.


    Genesis Energy and Greenwave Reality began a strategic partnership in May 2012, Greenwave Reality is a global innovator in the ‘smart’ home services market and will work with us in developing home energy management products for customers using the name homeiQ.

    The joint development effort will initially focus on home energy management but will expand to include connected lighting, home monitoring and potentially other exciting future services based on the highly secure and scalable Greenwave Reality Monitoring and Control Platform.

    By using homeiQ products, customers gain a better understanding of their home energy consumption and how to become more energy efficient through a number of features including intuitive energy visualisations and comparisons, interactive coaching, budgeting, smart controls and alerts.

    homeiQ is being rolled out to the 15 Tomorrow Street households first, then to a test group of customers before being made available to all customers.  

    Multi Rate Pricing Tariff

    From 1 January 2012, Genesis Energy has been running trials of an Advanced Meter pricing tariff with a test group of 225 customers in the United Waitemata network. The multi rate tariff gives customers direct financial benefits for changing the timing of their energy consumption.

    The higher tariff in the peak period and lower tariff in the off peak period act as an inventive for customers to shift from peak time (4pm – 9pm on weekdays) to off peak time (11pm – 7am weekdays and 10pm – 7am weekends) or the shoulder period (all times not covered by peak or off peak).

    In addition to the multi rate pricing tariff we will also look to develop a range of advanced metering products that give customers who have concerns about their ability to pay, more proactive account balance information. Advice will be provided on what actions they might need to take to stay in control of their energy consumption and costs.

    The Company’s commitment to its Advanced Meter rollout programme will make these benefits available to more and more customers over the next few years. Our target is to install Advanced Meters in virtually all of its electricity connections.

    Mike Fuge

    Chief Operating Officer

  • Enhancing the Customer Experience


    The Company has focused on process improvements and efficiencies throughout the business.

    The Company focus on customer experience and creating customer value is based on enhanced services, improved processes within the Hamilton contact centre and technology innovations (see Our Customer Innovations).

    Genesis Energy’s customer satisfaction levels are comparatively high against our industry peers. We regularly ask our customers how satisfied they are with our overall performance and the percentage that rate our total service as good, very good or excellent was 93 per cent in June 2012.

    Customer switching between electricity retailers in 2011/2012 was exceptionally high during the ‘What’s My Number’ campaign funded by the Electricity Authority. During this period we retained our customer base and market share. Total customer churn for the year to June 2012 was 18 per cent compared to 14 per cent in the previous year.

    Genesis Energy has maintained a 26.6 per cent share of the electricity market (26.8 per cent in 2011) and a 42.7 per cent share of the retail gas market (43.5 per cent). Electricity customer numbers were 548,356 at 30 June 2012. Gas customer numbers were 112,718 at the end of June. The number of LPG customers grew to 7,610.

    The Company has focused on process improvements and efficiencies throughout the business. A Lean Six Sigma team was established from a group of people selected across all activities with Genesis Energy. Not only this, we committed to train and release time from some of our existing staff to lead improvements within their part of the business.

    The Lean Six Sigma team came up with a range of business improvements that could easily be introduced and save the business money. They took a hard look at the customer experience we offered, specifically our customer-facing processes (such as those experienced by people wanting to become customers). The team made the processes simpler and more efficient, while simultaneously managing to reduce the number of bad debtor customers.

    Call centre efficiencies were identified that have simplified our processes, helped reduce operator training time and reduced significantly our cost of service, saving the company millions of dollars. Even the language we used with customers was investigated and changed, making it more understandable and our organisation less remote and more personable and approachable.

    This team has now been moved into the group tasked with overseeing Genesis Energy’s transformation and are currently exploring innovative new ways to reduce our operating costs through smarter processes and better business operation.

    Examples of business improvements:

    • The time between setting a up a new major customer and the production of their first bill was taking on average 22 days and more importantly 23 per cent of the time we were not meeting the customers expectation of 30 days.  Using a structured approach, a series of low cost improvements were identified and implemented across multiple teams.  The time to produce the bill was reduced to an average of 12 days and only 4 per cent of the time are we exceeding the target of 30 days 
    • There are hundreds of written communications sent to customers each month, responding to ad hoc queries or requests for information. Of concern was the fact that only 29 per cent met the quality levels expected to deliver the best customer outcome, and only 43 per cent were being accurately archived. The first phase improvements have resulted in a 93 per cent improvement in quality and more than doubled archiving performance. There has also been a 53 per cent reduction in time taken with these communications – freeing up our staff to assist more customers.
    • Advanced metering allows customers to say goodbye to estimated readings, estimated bills and visits from meter readers and also to be informed about and control their energy usage. The challenge associated with Genesis Energy’s large scale metering deployment was a monthly stepped increase in meter communication faults. This was resulting in estimated readings (with associated customer dissatisfaction) and resourcing pressure. A series of improvements has reduced the communications faults by 42 per cent and also increased the contractor response time to genuine faults from 38 days to 12. It has also meant that the forecasted additional 11 staff will not be required to manage communication faults.

    Addressing access to energy

    Genesis Energy continues to offer a range of services to our customers to improve or maintain access to electrcity, gas and customer support services.

    Our Customer Contact Centre in Hamilton offers an interpretation service for customers who speak English as a second language.

    We offer a broad range of payment options, including EvenPay, which gives customers certainty over 12 months of even payments. In order to help our customers who have budgeting and credit issues, we work closely with Work and Income New Zealand and the the New Zealand Federation of Family Budgeting Services. We also have programmes to support customers facing severe hardship. We have programmes to support vulnerable and medically dependent customers.

    Genesis Energy
    Call Center

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  • Energy Management


    Matching production output with demand is a priority driving portfolio optimisation.

    Genesis Energy operates a diverse portfolio of generation assets with a mix of fuel types and physical locations.

    The diversity of the portfolio enables the Company to balance its output and match its customer demand as well as respond efficiently and effectively to market conditions.

    During the year ended 30 June 2012 wholesale electricity market conditions were volatile and dynamic as hydro storage levels were impacted by a mix of low and high rainfall and inflows into hydro catchments.

    Genesis Energy chose to manage its Tekapo A and B hydro reserves prudently during the low inflow period in early 2012. When market conditions allowed, electricity was pulled south on the HVDC link and higher volumes were generated from the Company’s North Island assets.

    Generation GWh 2011/2012 2010/2011 Per cent change
    Total Generation 8,467 6,526 29.7
    Gas 3,041 3,372 -9.8
    Coal 2,613 1,015 157.4
    Hydro 2,788 2,111 32
    Wind 25 27 -7.4
    Thermal 5,654 4,387 28.9
    Renewable 2,812 2,138 31.5
    North Island 7,581 6,445 17.6
    South Island 885 81 992.6

    Total generation from the portfolio increased 29.7 per cent to 8,467GWh from 6,526GWh as the Company recorded a full year’s contribution from Tekapo A and B hydro stations, and thermal generation increased due to low lake levels in the South Island. Gas generation was down due mainly to the five day outage of the Maui gas pipeline in October 2011.

    Matching production output with demand is a priority driving portfolio optimisation. Retail customer demand is now being matched by renewable plant plus Huntly Unit 5, an efficient combined cycle gas turbine.

    Successful integration of Tekapo A and B

    Genesis Energy acquired the Tekapo A and B hydro power stations and associated assets on 1 June 2011 from Meridian Energy. Under a Transitional Service Agreement, Meridian Energy continued to operate the two stations until mid-August 2011 until a new control and communications system linking the stations with the Company’s Renewable Energy Control Centre in Tokaanu was completed allowing the Company full operational control of the assets.

    The complex transaction and handover of the Tekapo assets was achieved on time and to budget, and no impact on the New Zealand electricity system. This was due to comprehensive stakeholder engagement, consultation with various organisations and regulators, and high quality handover procedures at the two companies.

    Kupe performance

    Genesis Energy holds a 31 per cent interest in the Kupe oil and gas field. The Company also holds supply contracts for 100 per cent of the Kupe gas.

    Kupe has now been in commercial production for two years and has been a key contributor to the Company’s revenue over the last 12 months. Genesis Energy’s Kupe investment is capable of providing further significant upside in value.

    The offshore Kupe oil and gas field became operational in late March 2010 and contributed a full 12 months performance to the 2011/2012 financial result.

    Genesis Energy's share of the sales for the year of operations of the Kupe oil and gas field included 5.9PJ of gas, 531 kilo-barrels of oil and 25.5 kilotonnes of LPG. Genesis Energy's share of LPG and oil production is proportionate to its 31 per cent shareholding in Kupe. Gas in excess of the requirements of the generation fleet is sold onto the wholesale market or bilateral deals are negotiated with a number of counterparties including some of New Zealand's major businesses.

    Huntly Power Station resource consents

    The Huntly site is located close to electricity and gas transmission, water, coal and gas supplies and to major North Island load centres.

    In February 2012, the Company announced that Huntly Unit 3 would be placed into long-term storage from the end of November 2012. The Company intends to keep the remaining Huntly Units available to meet market needs for as long as they are commercially valued.

    A second Huntly Unit (Unit 1) remains scheduled for entry into long-term storage in December 2014. However, the Company will maintain a degree of optionality over the storage schedule for the second Unit to respond to any observed changes in anticipated demand.

    On 27 April 2012, Genesis Energy was granted replacement operating consents for the Huntly Power Station site by the Waikato Regional Council, for a further 25 years. No appeals were received against the Council’s decision. The replacement consents authorise the full present output capacity from the site, which will support its continued long term role in supplying firm and controllable electricity and important ancillary services (such as frequency and voltage support) to the National Grid.

    Ash disposal

    From the coal-burning process, the fly ash that is not collected by a local cement company, and all furnace bottom ash, is mixed with water into a lean-phase slurry. This is sent through a pipeline to ash settling ponds two kilometers from the power station. In the summer of 2011/2012, approximately 150,000 tonnes of historic pond ash was excavated and trucked to a nearby mine void. As this disposal has been happening for several years, the capacity of the purpose-built disposal pod at the coal mine was reached this season.

    Recently, pond ash has also been transported to a large municipal landfill facility where it is presently being used for two important applications. Its main use is as daily cover on top of the fresh waste, which saves the need to utilize onsite virgin clay materials for the daily cover purpose. The second function is to use the ash as an engineered fill layer on top of the landfill’s basal lining system.

    Partnership with Waahi Whaanui to clean up Lake Waahi

    As a result of forging a strong relationship with Waikato iwi, Waikato-Tainui Inc, Waahi Whaanui and Genesis Energy jointly applied for funding from the Waikato River Authority to establish a restoration programme on Lake Waahi, which is near the Huntly Power Station and of cultural significance to local Marae.

    Funding from the Authority and Genesis Energy will go towards a pest fish removal programme, riparian habitat enhancement and the development of a native plant nursery.

    The project centers on a restoration cycle involving trapping and removing pest fish (mainly koi carp) from Lake Waahi, converting the fish into compost using a digester, and using the compost in nurseries to grow plant specifically for replanting around the lake to improve the habitat and water quality around the lake and streams.

    Tekapo Canal Remediation

    On-going monitoring at the Tekapo Canal has indicated that the canal has deteriorated since August 2011, with new leaks appearing. Renewed focus on seismicity issues since the major Canterbury earthquakes in 2010 and 2011 has also brought additional focus on the long-term serviceability of the canal. The current risk of canal failure is considered in excess of normally accepted levels.

    The Company views the Tekapo Canal remediation as a priority and has allocated in excess of $125 million for remediation work to address long term stability and serviceability of the canal, as well as known occurrences of any leakages. The remediation programme is expected to be completed over a two-year period.

    The applications for resource consents were lodged on 4 May 2012. Resource consents were due to be managed on a non-notified basis and available by mid-August 2012. The first canal outage is scheduled to commence in early 2013.

    Castle Hill Wind Farm

    A resource consent application for the proposed Castle Hill Wind Farm in northern Wairarapa was lodged with four local authorities (Horizons Regional Council and the Tararua District Council, Greater Wellington Regional Council and Masterton District Council) on 1 August 2011. After submissions were received by the consenting authorities, a total of 12 days of hearings were held in November and January.

    The consenting authorities appointed three independent commissioners to conduct the hearing and their decision to grant consents with altered conditions was released on 11 June 2012.

    Genesis Energy appealed to the Environment Court to alter specified conditions contained in the joint decision. The conditions appealed by Genesis Energy relate to the reduced development parameters and several other technical matters imposed by that decision. Three appeals from community organisations have also been submitted to the Environment Court.

  • Our Emissions Profile


    Monitoring our greenhouse gas inventory emissions

    Genesis Energy’s Greenhouse Gas Inventory has been prepared in alignment with the World Business Council for Sustainable Development Greenhouse Gas Protocol (GHG Protocol) and is shown in the table below. 

    Greenhouse Gas Inventory 2009/2010 2010/2011
    % Change
    Scope 1: Direct GHG emissions (tCO2e)
    Generation 3,529,288 2,477,137 3,736,488 51%
    Petrol (fleet fuel use) 184 202 193 -4%
    Diesel (fleet fuel use) 78 116 144 24%
    Total Scope 1 3,529,550 2,477,456 3,736,826 51%
    Scope 2: Indirect GHG emissions from consumption of purchased electricity (tCO2e)
    Purchased electricity - generation facilities 243 124 173 40%
    Purchased electricity – offices 457 450 363 -19%
    Total Scope 2 700 574 536 -7%
    Scope 3: Other indirect GHG emissions (tCO2e)
    Air travel 212 277 415 50%
    Rental cars and mileage 35 53 46 -15%
    Total Scope 3 246 330 461 39%
    Total Scope 1, 2 and 3 (2) 3,530,496 2,478,360 3,737,822 51%

    (1) SF6, methane (CH) and nitrous oxide (NO) are not included in our emissions profile.

    (2) Note that all of the emissions in this inventory are on an operational control basis.

    There was a 51% increase in the Company’s total generation emissions for 2011/12 in comparison to 2010/11, and a 6% increase in comparison to 2009/10. This is related to our increased total direct energy consumption of our generation fuel use (coal and gas) from 39.06 PJs to 51 PJs.

    These results are a reflection of high demand of thermal generation due to low national hydro inflows. This demand has resulted in increased generation from coal-fired and gas-fired plant.

    This is shown in our carbon intensity profile. Carbon intensity is calculated by dividing annual CO2 emissions (tCO2e) by the annual net generation (GWh).

    Our fleet fuel use of petrol and diesel increased from 4,402 GJs to 4,674 GJs. This is a reflection of decreased use of rental cars and mileage claims in preference for the use of Company owned vehicles.

    The total indirect energy consumed (purchased electricity) to run our business in 2011/2012 was 14,072 GJ. This was an 8% increase in total indirect energy consumed compared to 2010/2011. Despite this increase, scope 2 emissions have decreased by 7 percent.  This is due to the make-up of electricity generation in the New Zealand energy market in 2011.  Given the nature of the electricity market in New Zealand it is not possible to exactly identify the primary energy source of our purchased electricity.  Therefore we have estimated the primary energy source using the New Zealand Energy Data File 2011 Calendar Year Edition from the Ministry for Economic Development.

    Genesis Energy 2011/2012 Indirect Energy (Electricity) Consumption by Primary Source
    Primary Source of Electricity Generation New Zealand Electricity Generation by Primary Source (%) (1) Genesis Energy Electricity Consumption by Primary Source (GJ)
    Hydro 57.6 8,105.60
    Gas 18.4 2,589.29
    Coal 4.7 661.39
    Geothermal 13.4 1,885.68
    Wind 4.5 633.25
    Bioenergy 1.3 182.94
    Other Thermal 0.1 14.07
    Total 100 14,072

    (1)    Source: New Zealand Energy Data File 2011 Calendar Year Edition from the Ministry for Economic Development: Figure G.1b p.102


  • Our Workplace


    Health and Safety Overview

    Genesis Energy’s most valuable asset is its talented and experienced staff. To ensure the safety of all staff members we are committed to excellence in the management of our various working environments and procedures to provide for their well-being.

    With health and safety a top priority every employee has a personal duty of care for their own safety and to avoid placing others at risk. To reinforce this we have an organisational health and safety strategy that supports the Genesis Energy business strategy. During the reporting period 100% of employees were represented in formal joint management and employee committees. Every site has a safety committee that meets monthly and has manager and employee representation.

    All contractors undertake relevant health and safety induction training and task specific training depending on their expected activities.

    Overall safety performance in the 2012 financial year shows a significant and sustained improvement over the previous year, as the result of a focus on hazard identification and mitigation at all levels of the business. The Total Recordable Injury Frequency Rate for 2012 at 7.32 represents a reduction of 76% on injuries compared to the previous year. This result was supported by a 10-fold increase in near-miss reporting during the year.  

    There was one Department of Labour notified incident recorded during the 2012 financial year, where an employee suffered a hairline fracture to the arm by endeavouring to enter an elevator while the doors closed.

    We are partly attributing the improvement in safety to our Zero Incidence Project (ZIP), a hard-hitting health and safety awareness initiative implemented internally over the past 12 months. This programme is less about process and procedure, but about getting employees to recognise what is important in their lives and how incidents at work can have a major impact.

    Genesis Energy had a total of 952 staff members as at 30 June 2012, compared with 976 as at 30 June 2011.

    Health and Safety Metrics 2009/2010 2010/2011 2011/2012
    Workforce Injury Rate (1)
    (Injuries / 100 employees)
    20.63 18.38 14.27
    Occupational Disease Rate
    (Occupational disease / 100 employees)
    0 0 0
    Percent lost days
    (Lost days / total days worked)
    0.02% 0.01% 0.01%
    Percent absent days
    (Absentee days / total days worked)
    4.16% 5.09% 4.50%
    Lost Time Injury Frequency Rate (LTIFR)
    (Lost time injuries x 1,000,000 / actual hours worked)
    9.87 4.35 3.66
    Total Recordable Injury Frequency Rate (TRIFR)
    ((Lost time injuries + Restricted work injuries + Medically treated injuries) x 1,000,000 / actual hours worked)
    33 31 7.32

    (1) The data reported includes all minor self-treatment first aid injuries.  These injuries were included in 2009 and 2010 and recalculated in 2011 to omit all minor self-treatment first-aid injuries.  2011 data has now been recalculated to include all minor self-treatment first aid injuries.

    Note: “Workforce” is defined as permanent and fixed term employees. Employees as at 30th June 2012

    Staff well-being and benefits

    Permanent Genesis Energy staff members receive a valuable range of benefits for themselves and their families. These benefits give staff the opportunity to take control of their personal health management and will assist them in the event of an accident or illness.

    Permanent employee benefits include:

    • Insurance Cover – We provide a range of insurance covers including life, terminal illness and accident insurance cover, trauma benefit and income protection.
    • Medical Cover – We offer surgical plan insurance or the choice of a capped medical insurance subsidy. There are a variety of options to suit most needs.
    • Health and Wellness Programme – This comprehensive system offers a range of voluntary, free programmes including: annual health checks for cholesterol, blood sugar, blood pressure and melanomas.
    • Leave – All permanent employees have access to sick leave beyond legislative minimums.

    In March 2012 our new Genesis Energy Employee benefits gateway website was launched in partnership with AON Hewitt. The website is a hub where staff can read monthly feature health articles, enter fitness challenges, use online health assessment tools and find updated information on the employee benefits programme.

    Employee Volunteering

    To ensure the commitment to supporting our community is shared by the whole organisation, Genesis Energy staff are encouraged to take one day every year to volunteer for a community or environmental project.

    In the period under review, 42% of Genesis Energy staff (409 people) took a day to volunteer for a community project or cause as part of the volunteer day initiative.

    As part of our volunteer days programme, staff participate in community projects including working at the SPCA, tree planting, gardening at local hospitals and helping Habitat for Humanity build homes for families in need. During 2011/12 Genesis Energy staff worked a combined total of 2996 hours in the community.

    Our Workforce Profile

    Genesis Energy practises and promotes respect for everyone in our workplace and within the communities in which we operate. We have instigated policies and procedures to provide a workplace that is free from discrimination, harassment, victimisation, vilification and bullying. Employment opportunities are based on merit with candidates evaluated according to their job related qualifications, skills, experience and general abilities. Our equal opportunities approach has given us a diverse workforce.

    In the 2011/12 period we have experienced an increase in staff turnover resulting from a change to a new customer-focused business strategy.







  • Our Communities


    Working within the community

    Genesis Energy takes seriously its responsibility to support the communities in which it operates and as a result focuses on supporting initiatives that work to benefit the social wellbeing of a community, provide educational opportunities for young people or enhance the physical environment in which we live and work. 

    During 2012:

    Our Schoolgen programme moved into the South Island with the provision of solar panels in three schools in Christchurch (Sumner, Banks Ave and Middleton Grange and one in Tekapo (Tekapo Primary). This brings the total number of schools with solar panels to 46. The Schoolgen team held three Cluster’ days at Schoolgen schools (Muritai, Huntly and Wanganui Primary) which enabled teachers and students from neighbouring schools to learn more about solar energy and energy efficiency.

    The Genesis Energy Oncology Trust completed their tenth annual grant round with a record allocation of $1.24 million to cancer research and professional education. Staff held a Mad Hatter’s day and raised a total of $17,230 for the Trust and 1,800 more customers signed up to donate $1, 2 or 3 via their monthly bill during the Genesis Energy Oncology awareness drive during May.

    The National Whio Recovery programme, which was established following the signing of a five year agreement between ourselves and the Department of Conservation, was formally officially launched in March to coincide with Whio Awareness month. The $2.5 million funding will support the establishment of effective predator control within eight ‘security’ sites around the country.

    Genesis Energy’s support of the Sir Edmund Hillary Outdoor Pursuits Centres of New Zealand  (OPC) continued with teams of students from 12 schools competing in a series of multi-sport endurance activities in order to win the Genesis Energy Hillary Challenge trophy.  And over 30 schools nationwide registered to enter the Student vs Wild competition in order to receive one of seven Genesis Energy school scholarships for ten students to attend OPC.

    Two Huntly primary schools (Huntly and Huntly West) entered their second year of the Foundation for Youth Development’s Kiwi Can programme. Aimed at improving social connectedness and student participation and engagement in learning, the programme focuses on life skills and values.

    Genesis Energy continued its support of three Curtain Banks located in Huntly, Wellington and Christchurch. During 2011 Wellington dispensed over 1,000 recycled and up-cycled curtains to 354 families, an increase of 66% on 2010. Christchurch Curtain Bank faced big challenges as a result of the February 2011 earthquake and yet still managed to supply 92 families with curtains. Huntly had a busy year providing 526 pairs of curtains to 121 families in the Huntly area.

    Two Aoraki Bound courses were run at the beginning of 2012, with a total of 28 participants completing a 20-day journey-based course aimed at building leadership, cultural awareness and personal development. Aoraki Bound is jointly run by Outward Bound and Ngai Tahu and is sponsored by Genesis Energy and BNZ.

    Realise the Dream, the National School Science and Technology Awards programme was run for the 9th consecutive year in the current format in December 2011. The six day event involving 19 secondary studentswho had exhibited excellence in either science or technology, concluded with an awards ceremony in Wellington. Genesis Energy presented awards for leadership and teambuilding, as well as the overall supreme award.


  • Participation in Public Policy


    Participation in Public Policy

    Genesis Energy seeks to engage and be involved in the creation of sound and appropriate public policy, legislation and regulation. Like most businesses we seek certainty and stability from public policy and regulation.  We take a principled approach that reflects this goal by supporting developments that are well thought through and that we expect will be in the long-term interest of our customers.

    Genesis Energy participated in a number of regulatory processes during the year ending 30 June 2012. In particular, we participated in the Land and Water Forum’s continued work on water reform, changes to the eligibility of units for the New Zealand Emission Trading Scheme, the resolution of appeals on the Manawatu-Whanganui Regional Council “One Plan”, the Canterbury Water Management Strategy, and the development of the Canterbury Proposed Regional Policy Statement and Proposed Land and Water Regional Plan.

    Genesis Energy made 80 submissions during the year ending June 2012 on national policy or regulatory issues. Notable issues that the Company made submissions on include the implementation guidelines for the National Policy Statement on Renewable Electricity Generation, scarcity pricing, rules relating to the use of advanced meters, the risk classification of canals under the Building Act, and the development of a model user systems agreement for retailers and distributors.

    Copies of the Company’s submissions are available online at this

    Land and Water Forum

    Genesis Energy depends upon having access to resources for our generation assets to operate. In particular, our thermal and hydro generation assets rely upon access to water to generate electricity. This access to water is currently provided by way of resource consents granted under the Resource Management Act 1991.

    The Land and Water Forum is considering whether the current approach to allocating water is the most efficient way forward to deliver both environmental and economic gains to New Zealand. We continue to participate in the forum and in the working group that is considering the allocation issue. Our focus is on ensuring that the Company has certainty around the ability to access water for existing and future assets, under any proposed allocation regime.

    Genesis Energy and the New Zealand Emissions Trading Scheme

    Genesis Energy has mandatory obligations under the Emission Trading Scheme (ETS). We have obligations as a Stationary Energy and Industrial Process participant for importing and purchasing coal, and mining natural gas due to our investment in the Kupe gas field.

    We must accurately report and file an Annual Emission Report to the Ministry for the Environment. Emission units may be purchased from within New Zealand or from the global market. Genesis Energy must surrender emission units that it has purchased (either nationally or internationally) to settle any obligations under the scheme.

    Genesis Energy does not receive a free allocation of emission units under the ETS. However, as a transitionary measure, all participants under the ETS were required to surrender one emission unit for every two tonnes of CO2e calculated in the Annual Emission Report. 

    The Government completed a review of the ETS in 2011/12. Following this review the Government has decided to keep the “one-for-two” obligation and the $25 ‘fixed-price option’ until at least 2015. The Government has also kept access to the global market unrestricted for the purchase of emission units valid under the ETS.

    Memberships in Associations AR 2012

    Genesis Energy maintains corporate membership of the following industry and business bodies:

    • NZ Wind Energy Association
    • Aotearoa Wave and Tidal Energy Association
    • Business NZ Major Companies Group
    • Business NZ Sustainable Business Forum
    • Gas Industry Company
    • Coal Association of New Zealand
    • Carbon Capture and Storage Steering Group
    • New Zealand Council for Infrastructure Development
    • NZ Marketing Association
    • Trans Tasman Business Forum
    • Employers and Manufacturers Association (Northern) Inc.
    • NZ Association of Accredited Employers Inc
    • Waikato and Bay of Plenty Civil Defence Lifeline
    • Business Leaders’ Health and Safety Forum



  • Our Assets


    Genesis Energy owns a broad range of thermal and renewable generation assets.

    One of Genesis Energy's core strengths is the diversity of our physical assets and methods of energy generation. Our powerstations are located in various areas of New Zealand and make use of different fuel types. This wide scope gives us the ability to maintain a high output, regardless of climatic conditions.

    Thermal generation assets

    The largest generation asset base of Genesis Energy is the 1,448MW coal and gas-fired plant at the Huntly Power Station site, comprising six generating units of varying age and technology. The oldest, Units 1 to 4, each have a generation capacity of 250MW, utilising conventional boiler and steam turbine technology.  Each unit can burn coal, gas or a mixture of the two.  Unit 5 is a 400MW high efficiency combined cycle gas turbine which was commissioned in June 2007. Unit 6 is a 48MW open cycle gas turbine. Total annual output for the year end 30 June 2012 was 5,654GWh (4,387GWh in 2010/11).

    Years commissioned:

    1982 to 1985 Units 1 to 4

    2004 Unit 6

    2007 Unit 5

    Generation units:

    250MW each
    Units 1 to 4

    48MW Unit 6

    400MW Unit 5:

    Renewable generation assets

    Genesis Energy also owns approximately 693.65MW of renewable generation assets. These include the Tongariro Power Scheme, the Waikaremoana Power Scheme, Tekapo A and B, and the Hau Nui Wind Farm. Total hydro generation output for the year ended 30 June 2012 was 2,787GWh (2,111GWh in 2010/11). Total wind generation in the year to 30 June 2012 was 24GWh (27GW in 2010/11).


    Tongariro Power Scheme

    The 362MW Tongariro Power Scheme gathers water from the mountains of the central volcanic plateau in the North Island through what are known as the Eastern and Western Diversions of the scheme, tapping a catchment area of more than 2,600 square kilometres. The water passes through a series of lakes, canals and tunnels to the Tokaanu and Rangipo hydro power stations before entering Lake Taupo.


    Years commissioned:

    1973 Tokaanu

    1983 Rangipo

    2008 Mangaio

    Generation units:

    60MW x 4 Tokaanu

    60MW x 2 Rangipo

    2 MW Mangaio

    Waikaremoana Hydro Scheme

    The 138MW Waikaremoana Hydro Scheme is located between the Te Urewera National Park and Wairoa, along the upper 7km of the Waikaretaheke River. The scheme uses water from Lake Waikaremoana, Waikaretaheke River and Kahuitangaroa Stream to generate electricity and incorporates three power stations (Tuai, Piripaua and Kaitawa).


    Years commissioned:

    1929 Tuai

    1943 Piripaua

    1948 & 1978 Kaitawa

    Generation units:

    20MW x 3

    21MW x 2 Piripaua

    18MW x 2 Kaitawa

    Hau Nui Wind Farm

    Hau Nui Wind Farm

    The 8.65MW Hau Nui Wind Farm is located on the South Wairarapa coast.  Originally commissioned in 1996 with seven turbines, Genesis Energy added an additional eight turbines in 2004 taking it to 15 turbines in total. Hau Nui uses renewable wind energy to generate electricity for supply to consumers via the local Wairarapa network, and at times via the national grid.


    Years commissioned:

    1996 & 2004

    Generating capacity:


    Tekapo A and B Hydro Stations

    The 185MW Tekapo A and B hydro power stations are located in the South Island in the Upper Waitaki catchment and generate electricity from the inflows into Lake Tekapo.  Hydro storage used to generate electricity at the Tekapo A power station flows through a 25km canal to the Tekapo B power station, where again the hydro storage of Lake Tekapo is used to generate electricity.  Following generation at the Tekapo B power station, the water is discharged into Lake Pukaki.

    Years commissioned:

    1951 Tekapo A

    1977 Tekapo B

    Generating capacity:

    25MW Tekapo A

    160MW Tekapo B

    Fuel supply

    Genesis Energy owns a 31 per cent equity share of the Kupe Oil and Gas Field. The Kupe oil and gas field is a major source of gas for Genesis Energy, although gas is also sourced from several suppliers and a number of gas fields. Coal is sourced locally and offshore.  Infrastructure was established by a joint venture entity at the Port of Tauranga in 2004 to facilitate the importation of coal, which is transported by rail to Huntly.

  • Role of the Board


    Generally, the principal functions of the Board are to:
    • Confirm corporate objectives, establish policy and approve major strategies;
    • Ensure business risks are appropriately identified and controlled;
    • Oversee processes for financial reporting and compliance and ensure the integrity of the management information system;
    • Select and review the performance of the Chief Executive and review succession planning;
    • Authorise the formation of any subsidiary companies and appoint Directors and oversee governance of subsidiary companies; and
    • Ensure compliance with all statutory requirements.

    The Board monitors actual financial results compared to budget and forecasts on a monthly basis and, on a quarterly basis, it reviews the Company’s performance compared to its business plan objectives.

    Annually, the Board holds strategic planning workshops with the Executive Management team, and reviews strategic initiatives regularly throughout the year.

    Board self-review

    Every year the Board undertakes an annual self-review process, which is an evaluation of the Board as a whole and of the Chairman.  This is conducted by utilising a range of tools including, evaluation templates, on line questionnaires generated from the Institute of Directors, one-on-one Director and whole of Board discussions.  High-level outcomes from this process are required to be reported to COMU.

    Board training and development

    The Board recognises the importance of continuing education for the role, duties and knowledge requirements of directorship in New Zealand. Directors, whether new to the role or experienced senior Directors, are given the opportunity to request and participate in training and development programmes made available by COMU, the Institute of Directors, the Company and other providers.  Board members may partake in specific industry conferences and workshops to keep abreast of developments unique to the business of the Company.

    Board Meetings

    The Board schedules a minimum of 11 meetings of Directors each year at which Directors receive written monthly and information monitoring reports, and reports on matters requiring Directors’ approval from the Chief Executive and senior management. The Board calls additional meetings of Directors as required.

    Each year, the Board aims to hold a number of meetings of Directors away from the corporate office, combining the Board meeting with an opportunity for Directors to meet and engage with stakeholders, iwi, hapu and business partners of the Company.

    Composition of the Board

    From the beginning of the year in review through to April 2012, the Board comprised of nine non-executive, New Zealand-resident, independent Directors.  Three Directors completed their terms as Directors on 30 April 2012, leaving the Board with six Directors and this remained so at year end 30 June 2012.  Three new Directors were appointed with effect from 16 July 2012. 

    The names of the Directors holding office during the year in review, including details of their qualifications, special responsibilities and standing committee memberships, are set out on the following page.


  • Composition of the Board


    From the beginning of the year in review through to April 2012, the Board comprised of nine non-executive, New Zealand-resident, independent Directors. 

    Three Directors completed their terms as Directors on 30 April 2012, leaving the Board with six Directors and this remained so at year end 30 June 2012.  Three new Directors were appointed with effect from 16 July 2012.  

    The names of the Directors holding office during the year in review, including details of their qualifications, special responsibilities and standing committee memberships, are set out on the following page.


  • Attendance at Meetings


    In the year ended 30 June 2012 there were twelve Board meetings including  one teleconference meeting,  five Audit Committee meetings, three Remuneration Committee meetings and nine Mixed Ownership Model Board Oversight Committee meetings.  Attendance at Board and Committee meetings was as per the table below.

    Directors Board Attendance
    (scheduled and additional)
    Audit Committee Remuneration Committee Board Oversight Committee
    Rt Hon Dame Jenny Shipley 12 4 3 6
    Joanna Perry 12 5   7
    Nicki Crauford (to 30 April 2012)   9   3 5
    Barbara Elliston (to 30 April 2012) 10 4   1
    Denis Wood   (to 30 April 2012) 9 4   7
    Graeme Milne   12 1   1
    John Dell 12   3 9
    Rukumoana Schaafhausen 12     1
    Rob Fisher 11      

    All Directors attended  a joint Board and senior management strategy planning workshop which was held in February 2012.

  • Board Committees


    The Board may establish a committee where it determines that a committee will enhance the Board’s effectiveness, while retaining Board responsibility

    To ensure efficiency, the Board specifically delegates some of its roles to Board subcommittees. The Board may constitute standing committees that focus on specific areas of the Board’s responsibility. The Board also reserves the right to constitute ad-hoc committees to consider or monitor proposed business projects. The Board may establish a committee where it determines that a committee will enhance the Board’s effectiveness, while retaining Board responsibility.

    All Board committees observe the same rules of conduct and procedure as does the Board, unless the

    Board determines otherwise.  Following each committee meeting, the committee is required to report back on its proceedings to the next meeting of the full Board.

    The current standing committees comprise the Audit Committee and the Remuneration Committee only (with no Nominations Committee required, as the appointment of Directors is administered by the Crown). 

    In the year under review, the Board constituted a temporary committee to oversee  the preliminary work required by the Government to determine the feasibility of extending the Mixed Ownership Model to Genesis Energy, ahead of the November 2011 General Election.

    Audit Commitee

    The Audit Committee has the power to recommend to the Board and is scheduled to meet no fewer than four times a year, with additional meetings being convened when required. The principal purpose of the Audit Committee is to assist the Board in the proper and efficient discharge of its responsibilities and to exercise due care and skill in relation to:

    • Integrity of external financial reporting;
    • Financial management;
    • Internal control systems;
    • Accounting policy and practice;
    • Risk management framework and monitoring compliance with that framework; and
    • Compliance with applicable laws, regulations and standards.

    The Chair of the Audit Committee is a chartered accountant and is not the Chairman of the Board.

    The Board has established Terms of Reference for the Audit Committee which are reviewed annually.

    Remuneration Committee

    The Remuneration Committee has power to recommend to the Board and is scheduled to meet no less than twice a year, with additional meetings being convened when required.

    The principal purpose of the Remuneration Committee is to assist the Board in the discharge of its responsibilities relative to the setting and review of the terms of employment and remuneration of the

    Company’s Chief Executive, the review of the terms of employment and remuneration of direct reports to the Chief Executive and the setting and reviewing of policy in relation to Directors’ fees and expenses.

    The Board has established Terms of Reference for the Remuneration Committee which are reviewed annually.

    Additional committee

    In the year under review the Board constituted a temporary committee of five Directors (deceasing to three Directors following two of the members completing their terms as Directors on 30 April 2012), called the Mixed Ownership Model Board Oversight Committee.  The committee was tasked with providing oversight of the preliminary work instigated by the Government prior to the November 2011 General Election, to assess whether it was appropriate to extend the Mixed Ownership Model to Genesis Energy.  This committee remains constituted to provide oversight of the Company’s engagement with the Government in relation to the Mixed Ownership Model.

  • Governance responsibilities of the Board


    The Board is responsible for the governance, proper direction and control of activities of Genesis Energy and its subsidiaries.

    The Board is responsible for guiding the strategic direction of Genesis Energy and its subsidiaries, and has overall responsibility for decision making.

    The Board delegates to the Chief Executive responsibility for implementing the Company’s strategy and managing the day-to-day operations of the Company. Specific delegations of responsibilities to the Chief

    Executive and the Senior Management team are recorded in the Delegations of Authority policy. These delegations are subject to annual review by the Board. Under the Delegations of Authority policy, specific functions, decisions and powers are reserved for the Board. The Board maintains ongoing oversight of all of Genesis Energy’s activities.

    Directors’ Qualifications Term and Special Responsibilities
    Rt Hon Dame Jenny Shipley, DNZM Appointed 1 November 2009
    Chairman of the Board from November 2009
    Member of Audit Committee from November 2009
    Member of Remuneration Committee from November 2009
    Member of Board Oversight Committee (MOM)
    Joanna Perry, MNZM
    MA Econ (Cantab), FCA (ICAEW), FCA (NZICA)
    Appointed 1 May 2007
    Member of Audit Committee from May 2007
    Chair of Audit Committee from September 2007
    Deputy Chair of the Board from May 2009
    Member of Board Oversight Committee (MOM)
    Nicola Crauford BSc (Hons),
    Appointed 1 January 2005
    Term Ended 30 April 2012
    Chair of Remuneration Committee from July 2008
    Barbara Elliston B.E. Elect (Hons) Appointed 1 May 2008
    Term Ended 30 April 2012
    Member of Audit Committee from May 2010
    Denis Wood MA Econ (Hons) Appointed 1 May 2009
    Term Ended 30 April 2012
    Member of Audit Committee from May 2010
    Member of Board Oversight Committee (MOM)
    Graeme Milne B.Tech (Biotech) Hons Appointed 1 May 2009
    John Dell BCom (Hons) CA Appointed: 1 May 2010
    Chair of Board Oversight Committee (MOM)
    Member of Remuneration Committee from May 2010
    Rukumoana Schaafhausen LLB Appointed: 1 May 2010
    Rob Fisher, ONZM
    Appointed: 1 November 2010
    Alison Andrew Appointed: 16 July 2012
    Andrew Clements
    Appointed 16 July 2012
    John Leuchars Appointed: 16 July 2012







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