1 00:00:00,040 --> 00:00:01,680 Speaker 1: So reporting season with the hope that some of the 2 00:00:01,680 --> 00:00:03,560 Speaker 1: results will tell a story of a turnaround for our 3 00:00:03,560 --> 00:00:06,360 Speaker 1: economy in general. Contact Energy first of the big four 4 00:00:06,440 --> 00:00:08,800 Speaker 1: gen tailors to report half your results. Net profit up 5 00:00:08,840 --> 00:00:11,680 Speaker 1: forty four percent. They've announced that to half billion dollar 6 00:00:11,680 --> 00:00:13,960 Speaker 1: five hundred and twenty five million dollar capital raised as well. 7 00:00:14,000 --> 00:00:18,400 Speaker 1: Mike Fujia's the Contact Energy boss and is with us. Mike, Morning, morning, Mike, 8 00:00:18,440 --> 00:00:20,599 Speaker 1: how are you very well? What's the line between your 9 00:00:20,680 --> 00:00:23,840 Speaker 1: profit and my power bill? 10 00:00:24,760 --> 00:00:27,920 Speaker 2: The line between the profit and power bill. Obviously we 11 00:00:28,040 --> 00:00:32,360 Speaker 2: have to collect power bills, but the primary reason for 12 00:00:32,400 --> 00:00:35,159 Speaker 2: the profit increase is the investments we've made and the 13 00:00:35,200 --> 00:00:39,560 Speaker 2: acquisition of Manua. So it's not about putting up prices, 14 00:00:39,600 --> 00:00:41,720 Speaker 2: it's about investing for your own future. 15 00:00:41,920 --> 00:00:44,360 Speaker 1: My person really was given, you've made so much profit, 16 00:00:44,400 --> 00:00:46,280 Speaker 1: why not put some back into my power bill and 17 00:00:46,280 --> 00:00:48,879 Speaker 1: make it a smaller bill. 18 00:00:49,080 --> 00:00:52,160 Speaker 2: I look the energy component of your power bills going 19 00:00:52,240 --> 00:00:55,000 Speaker 2: up by adoless inflation. The important thing is we have 20 00:00:55,160 --> 00:01:00,320 Speaker 2: to invest and build more generation to meet the growing 21 00:01:00,360 --> 00:01:04,040 Speaker 2: demand in the New Zealand economy. So it's a fine balance. 22 00:01:04,200 --> 00:01:06,679 Speaker 2: And I realized KIW homes are doing it tough and 23 00:01:06,720 --> 00:01:09,759 Speaker 2: no one ever ever appreciates the powerbill. I get that. 24 00:01:10,240 --> 00:01:13,679 Speaker 2: But there's also that dance of investing for New Zealand's future. 25 00:01:14,080 --> 00:01:16,520 Speaker 1: Where is peak investment. I've got you with a battery, 26 00:01:16,600 --> 00:01:21,000 Speaker 1: I've got you solar firm, I've got you geothermaling, and 27 00:01:21,040 --> 00:01:23,640 Speaker 1: I'm assuming the other gentailors are doing something similar. That's 28 00:01:23,680 --> 00:01:25,920 Speaker 1: a lot of investment and a lot of infrastructure. 29 00:01:27,080 --> 00:01:30,600 Speaker 2: Yes it is. It's about making New Zealand's energy supply 30 00:01:30,800 --> 00:01:34,720 Speaker 2: more resilient. But it's also about meeting the demands of 31 00:01:34,920 --> 00:01:38,160 Speaker 2: a growing economy, and we can see that growth coming in. 32 00:01:38,280 --> 00:01:41,520 Speaker 2: So it is very much a signal of confidence in 33 00:01:41,520 --> 00:01:44,920 Speaker 2: the New Zealand economy as it grows. Energy demand and 34 00:01:45,120 --> 00:01:47,639 Speaker 2: economic growth are inextricably linked. 35 00:01:49,040 --> 00:01:52,840 Speaker 1: How do you draw the line between what you're investing 36 00:01:53,440 --> 00:01:57,120 Speaker 1: when that comes online, whether you've gone too far along 37 00:01:57,120 --> 00:02:00,560 Speaker 1: with what everybody else has done versus the growing economy. 38 00:02:00,600 --> 00:02:03,440 Speaker 1: Because it's a known's interest, at least of your yours, 39 00:02:03,880 --> 00:02:05,000 Speaker 1: to build too much stuff. 40 00:02:06,720 --> 00:02:11,720 Speaker 2: No, it is, well, first, the most important thing is 41 00:02:11,760 --> 00:02:15,080 Speaker 2: you build enough. No one wants to build too much 42 00:02:15,120 --> 00:02:18,680 Speaker 2: and have our sets sitting there doing nothing. But at 43 00:02:18,680 --> 00:02:21,639 Speaker 2: the moment we can see that very strong demand growth 44 00:02:21,680 --> 00:02:26,320 Speaker 2: coming down as people convert from gas to electricity major industries. 45 00:02:26,360 --> 00:02:30,960 Speaker 2: We can see new industries coming in and that confidence, 46 00:02:31,000 --> 00:02:35,400 Speaker 2: and we can see households both being built but also converting. 47 00:02:35,480 --> 00:02:38,560 Speaker 2: And so we can see at least three two what 48 00:02:38,639 --> 00:02:44,240 Speaker 2: hours by twenty thirty coming towards us and that's in 49 00:02:44,280 --> 00:02:46,720 Speaker 2: a total demand of about forty so it's close to 50 00:02:46,800 --> 00:02:50,520 Speaker 2: ten percent in the next five years. So we don't 51 00:02:50,560 --> 00:02:52,760 Speaker 2: worry about building too much. The most important thing is 52 00:02:52,760 --> 00:02:56,600 Speaker 2: actually building the capability and capacity to be able to 53 00:02:56,680 --> 00:02:58,480 Speaker 2: build and not build too little. 54 00:02:58,680 --> 00:03:01,480 Speaker 1: You mentioned the gas the play by the government. Does 55 00:03:01,480 --> 00:03:03,799 Speaker 1: that help? And the report I read the other day, 56 00:03:03,840 --> 00:03:06,679 Speaker 1: the suggestion is that the damage was done people who 57 00:03:07,360 --> 00:03:09,799 Speaker 1: saw gases a dead end and they've moved on to 58 00:03:09,880 --> 00:03:13,920 Speaker 1: other things. So is the gas solving anything Energy? 59 00:03:14,440 --> 00:03:16,919 Speaker 2: It helps with a security of supply, and that actually 60 00:03:16,960 --> 00:03:19,520 Speaker 2: helps you build more intermittent So if you're building more 61 00:03:19,520 --> 00:03:24,000 Speaker 2: intimittive wind and solar, you need firm ways of firming 62 00:03:24,040 --> 00:03:26,120 Speaker 2: it when the wind doesn't blow and the sun doesn't shine. 63 00:03:26,160 --> 00:03:30,040 Speaker 2: So energy is about just ensures you've got another string 64 00:03:30,080 --> 00:03:34,520 Speaker 2: to your bow when we have dry years, And in 65 00:03:34,520 --> 00:03:38,600 Speaker 2: that respect, it's a sensible idea. It's a good idea, and. 66 00:03:38,560 --> 00:03:40,640 Speaker 1: I assume you've got no problem raising half a billion dollars. 67 00:03:40,680 --> 00:03:42,480 Speaker 1: There's plenty of money out there for this sort of stuff. 68 00:03:44,320 --> 00:03:47,480 Speaker 2: It's it's always a privilege when you go out and 69 00:03:48,200 --> 00:03:51,680 Speaker 2: you get strong interests when you're raising money, and so yeah, 70 00:03:51,800 --> 00:03:54,960 Speaker 2: it's it's been a privilege over these last few days 71 00:03:55,280 --> 00:03:58,680 Speaker 2: to announce the capital raisin. The interest has been very 72 00:03:58,680 --> 00:04:01,160 Speaker 2: positive and we'repreciate that good stuff. 73 00:04:01,160 --> 00:04:02,800 Speaker 1: All right, Nice to talk to you. Mike Fushiu's the 74 00:04:02,840 --> 00:04:04,280 Speaker 1: Contact Energy Boss this morning. 75 00:04:04,680 --> 00:04:07,600 Speaker 2: For more from the Mic Asking Breakfast, listen live to 76 00:04:07,680 --> 00:04:10,760 Speaker 2: News Talks at B from six am weekdays, or follow 77 00:04:10,800 --> 00:04:12,360 Speaker 2: the podcast on iHeartRadio.