Photo: RNZ / Nate McKinnon
Contact Energy independent chair Rob McDonald says the energy market is not broken and warns proposed undefined regulatory changes to market settings is a concern.
"We need stable market settings that support investor confidence," McDonald told the annual meeting of shareholders this morning.
"We welcome the government's initiatives to improve resource consenting to accelerate renewable development. However, calls for fundamental - but undefined market reform - and its potential impact on investment confidence is of concern."
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McDonald said the unintended consequences of the former government's oil and gas offshore exploration ban put in place in 2018 was behind recent fuel supply shortages.
"The abrupt gas decline has hit the country faster, and with more impact that could have been foreseen. What we see today, is the result of a cut in fuel supply," McDonald said.
"We need to be careful such mistakes are not repeated."
He said the industry needed policies to encourage growth in electricity demand and supported new investment in renewable energy.
Renewable energy
Contact Energy chief executive Mike Fuge said unnecessary delays to obtaining resource consents for renewable energy was holding up development and leading to high spot power prices.
"This is partly why we were disappointed when the Southland Wind Farm fast track resource consent was declined in March," Fuge said.
"While we have now been accepted to lodge an application under the new fast track legislation, and have done so, the reality is an exorbitant amount of time, and expense, was consumed with the previous planning regime, with little productive outcomes for society at large."
Director fees
Contact shareholders approved a 23 percent increase in total directors fees to $1.85 million, which was the first increase in 17 years.
NZ Shareholders Association proxy holder Alan Best voted against the proposal.
Best said the fee pool was already at the upper end of the scale and the association would have preferred to see incremental increases rather than a large increase following a long period of time.
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