Ann: QUARTER: TPW: Trustpower Limited 1st Quarter Operating...

• Release Date: 24/07/15 13:40
• Summary: QUARTER: TPW: Trustpower Limited 1st Quarter Operating Results
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					TPW
24/07/2015 13:40
QUARTER
PRICE SENSITIVE
REL: 1340 HRS Trustpower Limited

QUARTER: TPW: Trustpower Limited 1st Quarter Operating Results

Market Announcement

Friday, 24 July 2015

Trustpower Limited First Quarter Operating Results for the Three Months Ended
30 June 2015

Trustpower's operating statistics for the quarter ended 30 June 2015 together
with prior period comparatives are provided at the end of this announcement.
Trustpower has continued to make good progress during the first quarter of
the 2016 financial year on the implementation of its retail growth strategy.
Energy accounts have increased by 8,000 and telecommunication connections by
6,000 since 31 March 2015.  Growth remains primarily targeted at North Island
metro markets. Pleasingly, the number of customers taking two or more
services has grown by 16,000 (38 percent) over the last twelve months
confirming Trustpower's leading multi-product retailing position.

Mass market electricity sales volume was up 5 percent on prior period, driven
by cooler weather during the quarter and increased customer numbers.  Time of
use sales volume increased 1 percent over prior period while gas sales volume
increased 33 percent.

New Zealand generation production was 5 percent above prior period but 1
percent below expected long term average.   New Zealand hydro production was
flat versus prior period but wind production was up 19 percent.

There was significant inflow into the major South Island hydro storage
catchments during the last quarter over the period and this has resulted in
total New Zealand hydro storage currently being well above average.  This has
resulted in lower wholesale electricity prices over the period as more
expensive thermal generation has been required to run less often.

Australian wind generation was 279GWh for the quarter, 9 percent higher than
prior period, mainly as a result of a full contribution from the Snowtown
Stage 2 wind farm which was still under construction in the prior period.
However, poor wind resource over the quarter has translated to production for
the quarter being 18 percent below long term expectation.

Earlier in the month Trustpower confirmed that Mighty River Power's advanced
meter subsidiary Metrix had given notice it would terminate its contract with
Trustpower to deploy advanced meters to Trustpower's customer base.  While
this will delay Trustpower's advanced metering deployment timetable,
Trustpower has made significant progress with its own system development and
there is now an opportunity to reconsider its approach to advanced meter
deployment and metering services.
Trustpower has recently sought leave to appeal to the Supreme Court in
response to the Court of Appeal's judgment, delivered in June 2015, regarding
Trustpower's feasibility expenditure dispute with the Inland Revenue.

During the period the Australian Federal Government has passed legislation
following a longstanding review of the Renewable Energy Target (RET).  As a
consequence the Large Scale Renewable Energy Target has been reduced to
33,000 GWh from 41,000 GWh by 2020.

While a reduction in the target is disappointing, it is not a surprise and
Trustpower continues to believe that there are opportunities to develop
further wind sites from its pipeline of development options in Australia.

BJ Harker
Chairman
End CA:00267413 For:TPW    Type:QUARTER    Time:2015-07-24 13:40:21