1
00:00:00,160 --> 00:00:03,120
Speaker 1: The rumors were true. Is Z Energy's power company, Flick,

2
00:00:03,160 --> 00:00:05,640
Speaker 1: has bowed out of the market forty one thousand customers.

3
00:00:05,680 --> 00:00:07,480
Speaker 1: They're going to move to Meridian, who bought it for

4
00:00:07,520 --> 00:00:10,320
Speaker 1: seventy million. The market now dominated by the four major

5
00:00:10,360 --> 00:00:13,920
Speaker 1: gen tailors and the various brands under which they sell electricity.

6
00:00:13,960 --> 00:00:17,200
Speaker 1: Lisa Hannafan, the Meridian chief customer officer, with me this morning. Lisa,

7
00:00:17,200 --> 00:00:20,000
Speaker 1: good morning, Good morning Ryan. Is this going to mean

8
00:00:20,079 --> 00:00:23,080
Speaker 1: higher prices for the market now that it's more consolidated

9
00:00:23,120 --> 00:00:25,240
Speaker 1: and we have fewer retail options?

10
00:00:26,160 --> 00:00:28,920
Speaker 2: I don't think so. I think that New Zealand's actually

11
00:00:28,960 --> 00:00:32,080
Speaker 2: really well served with the amount of competitors we've got.

12
00:00:32,120 --> 00:00:35,080
Speaker 2: We've got more in New Zealand per capita than both

13
00:00:35,080 --> 00:00:38,320
Speaker 2: Australia and the UK, and we all compete pretty fiercely

14
00:00:38,400 --> 00:00:38,800
Speaker 2: out here.

15
00:00:39,840 --> 00:00:44,199
Speaker 1: But we've you've just consolidated. You're taking on what an

16
00:00:44,200 --> 00:00:45,760
Speaker 1: eighteen percent market share?

17
00:00:45,800 --> 00:00:46,040
Speaker 2: Is there?

18
00:00:46,040 --> 00:00:46,600
Speaker 1: What you've got?

19
00:00:48,040 --> 00:00:51,080
Speaker 2: That's right? Well, once we've acquired Flick, we'll have eighteen percent,

20
00:00:51,120 --> 00:00:53,560
Speaker 2: so that will leave us in our normal position, which

21
00:00:53,600 --> 00:00:55,760
Speaker 2: is the fourth largest electricity retailer.

22
00:00:56,520 --> 00:00:58,720
Speaker 1: And you don't think it's going to have any effect

23
00:00:58,800 --> 00:00:59,360
Speaker 1: on prices.

24
00:01:00,440 --> 00:01:03,040
Speaker 2: I don't think it is. No. No, I think that

25
00:01:03,600 --> 00:01:06,560
Speaker 2: we're all fighting for every customer that we get, and

26
00:01:06,600 --> 00:01:09,679
Speaker 2: we know that customers expect really good value for money,

27
00:01:09,760 --> 00:01:14,240
Speaker 2: So we think that our pricing is really fair and

28
00:01:14,520 --> 00:01:18,320
Speaker 2: that our new Flick customers will be really well served.

29
00:01:19,000 --> 00:01:22,399
Speaker 1: Do you give as a business preferential hedge deals to

30
00:01:22,520 --> 00:01:25,119
Speaker 1: your retail alarm? This is what the Commerce Commission says

31
00:01:25,120 --> 00:01:25,319
Speaker 1: you do.

32
00:01:27,000 --> 00:01:29,319
Speaker 2: Yes, we have heard that, but that's not really how

33
00:01:29,360 --> 00:01:33,119
Speaker 2: it works. Obviously, we are a vertically integrated business, and

34
00:01:33,200 --> 00:01:35,399
Speaker 2: that's actually a really great thing for customers because what

35
00:01:35,440 --> 00:01:39,080
Speaker 2: it means is that we can intulate those customers from

36
00:01:39,120 --> 00:01:43,440
Speaker 2: the volatility that you do see in a renewables market. So, no,

37
00:01:43,640 --> 00:01:47,319
Speaker 2: we don't give preferential treatment. We offer hedges to the

38
00:01:47,360 --> 00:01:48,760
Speaker 2: market just like everybody else.

39
00:01:48,880 --> 00:01:51,680
Speaker 1: But are they on the same terms as you would

40
00:01:51,720 --> 00:01:54,600
Speaker 1: offer to the smaller players. Because this is the argument,

41
00:01:54,680 --> 00:01:58,120
Speaker 1: right that the lights of Fleck have been pushed to

42
00:01:58,200 --> 00:02:02,480
Speaker 1: the wall and forced to because they're not getting the

43
00:02:02,480 --> 00:02:06,920
Speaker 1: same access to sweetheart deals as if they were a

44
00:02:07,080 --> 00:02:08,400
Speaker 1: vertically integrated business.

45
00:02:09,200 --> 00:02:11,399
Speaker 2: Yeah. So one of the things that was really attractive

46
00:02:11,440 --> 00:02:15,520
Speaker 2: about the Flick proposition is that they did have a

47
00:02:15,560 --> 00:02:19,640
Speaker 2: really sophisticated hedge box, so they were actually really well hedged,

48
00:02:19,639 --> 00:02:22,440
Speaker 2: which is just a demonstration that it is possible to

49
00:02:22,440 --> 00:02:25,360
Speaker 2: build that really strong book even if you are not

50
00:02:25,440 --> 00:02:28,520
Speaker 2: a generator of electricity. So I don't think that is

51
00:02:28,600 --> 00:02:31,560
Speaker 2: the case. Flick have decided that they want to exit

52
00:02:31,600 --> 00:02:33,920
Speaker 2: the market to focus on what their core business is,

53
00:02:33,960 --> 00:02:37,240
Speaker 2: which is transport and EVS, and so they're getting out

54
00:02:37,280 --> 00:02:40,400
Speaker 2: of retailing electricity in both New Zealand and Australia. It's

55
00:02:40,480 --> 00:02:42,880
Speaker 2: not about a takeover of the gent tailors.

56
00:02:42,960 --> 00:02:46,600
Speaker 1: So if you're telling me that you do not, and

57
00:02:46,639 --> 00:02:50,480
Speaker 1: you have never given better terms or conditions on a

58
00:02:50,520 --> 00:02:54,040
Speaker 1: hedge deal to your own retail arm than you would

59
00:02:54,080 --> 00:02:58,040
Speaker 1: have given to any smaller operator, is the Commerce Commission

60
00:02:58,600 --> 00:02:59,400
Speaker 1: lying or wrong?

61
00:03:00,560 --> 00:03:06,200
Speaker 2: I don't think the Comments Commission is lying certainly right. Well,

62
00:03:06,200 --> 00:03:08,920
Speaker 2: I don't think that we're saying that. I think how

63
00:03:09,240 --> 00:03:12,000
Speaker 2: how vertical integration works is we don't sell hedges to

64
00:03:12,040 --> 00:03:15,640
Speaker 2: our retail business. We're one business that generates electricity and

65
00:03:15,680 --> 00:03:18,400
Speaker 2: we also retail to our customers, and we have some

66
00:03:18,520 --> 00:03:22,000
Speaker 2: internal mechanisms for how that works, but we certainly don't

67
00:03:22,040 --> 00:03:24,080
Speaker 2: sell hedges Internally, that's not how it works.

68
00:03:24,120 --> 00:03:25,840
Speaker 1: What are your internal mechanisms.

69
00:03:27,000 --> 00:03:29,880
Speaker 2: So we generate electricity and we sell it on the market,

70
00:03:29,960 --> 00:03:34,360
Speaker 2: and we also buy energy and we sell it to

71
00:03:34,400 --> 00:03:37,080
Speaker 2: our retail customers, and that's that's how it works.

72
00:03:37,000 --> 00:03:40,400
Speaker 1: Right, So there's no you cannot see where the Commerce

73
00:03:40,400 --> 00:03:42,920
Speaker 1: Commission is coming from at all and their complaints and

74
00:03:42,960 --> 00:03:45,240
Speaker 1: their their sort of request for change.

75
00:03:45,800 --> 00:03:50,000
Speaker 2: Look, we really welcome any investigation into the industry. We

76
00:03:50,040 --> 00:03:52,320
Speaker 2: want it to be really strong and robust. We think

77
00:03:52,360 --> 00:03:56,200
Speaker 2: that's really important. Energy is the cornerstone of our economy

78
00:03:56,240 --> 00:03:58,360
Speaker 2: and everybody needs to use it in their life. So

79
00:03:58,400 --> 00:04:02,240
Speaker 2: we'll welcome any investigation. But I'm really confident that we're

80
00:04:02,280 --> 00:04:03,160
Speaker 2: doing the right thing.

81
00:04:03,080 --> 00:04:05,200
Speaker 1: All right, least appreciate you time this wanting. Lexa Hannafin,

82
00:04:05,240 --> 00:04:08,240
Speaker 1: Maridy and Chief Customer Officers with us for more from

83
00:04:08,320 --> 00:04:11,560
Speaker 1: early edition with Ryan Bridge. Listen live to news talks.

84
00:04:11,560 --> 00:04:14,840
Speaker 1: It'd be from five am weekdays, or follow the podcast

85
00:04:14,880 --> 00:04:15,800
Speaker 1: on iHeartRadio.