NEWS RELEASE 26 March 2013
Shareholder notifies removal of ECNZ indemnities Mighty River Power was advised today that the Company’s Shareholders had taken steps to remove historical Crown indemnities that had been in place since the formation of Mighty River Power in 1999. Mighty River Power Chair, Joan Withers, said the Shareholding Ministers confirmed with the Board that the indemnity provisions in the 1988 ECNZ Crown Sale Deed which had transferred to Mighty River Power – providing compensation rights in certain circumstances – were to be removed. The Crown also confirmed with Mighty River Power that it has taken the same approach in relation to the other proposed mixed ownership model companies with similar rights. Mrs Withers said that the scope of these compensation rights had not been tested. However, the removal of the indemnities means the Company did not now have the protection of those specific indemnities. The first of the indemnities removed relates to the Company’s use of water and geothermal fluid, where (to the extent they are not otherwise recoverable), any tax, royalty, levy or impost affecting power stations which were in existence in 1988 could now no longer be recovered from the Crown. These effects could arise as a result of statutory and regulatory action giving effect to policies introduced by the Crown or as a result of Court decisions. The second of the indemnities relates to circumstances where, pursuant to a Waitangi Tribunal recommendation, ownership is transferred to Maori of former Crown owned land. Compensation to the Company for the loss of this land, which could include land beneath the Waikato hydro system, would now be limited to statutory compensation under the Public Works Act. The now-removed indemnities provided additional compensation in the event that the Public Works Act did not fully compensate the Company. ENDS
For further information: Angela Armstrong Corporate Communications T 0272 105 337
Anna Hirst Head of Investor Relations T 0275 173 470
Mighty River Power is one of New Zealand’s largest electricity companies – with its core business based on reliable, low fuel-cost electricity generation complemented by sales to businesses and homes, which account for about 18% of New Zealand’s total electricity consumption. The Company operates nine hydro power stations, four geothermal plants and a multi-unit gas-fired station. More than 90% of its electricity production is from renewable sources. Mighty River Power sells electricity through multiple channels and retail brands, including Mercury Energy, GLO-BUG, Bosco Connect and Tiny Mighty Power. Mighty River Power’s metering business, Metrix, provides electricity retailers with advanced metering infrastructure (AMI) solutions for their residential and commercial customers.