What role, if any, did the Government or its agencies play in facilitating or brokering the 20‑year bilateral electricity contracts between New Zealand Aluminium Smelters (NZAS), Meridian Energy, Contact Energy, and Mercury NZ?

Answer

The Government assisted in the facilitation of the commercial negotiations that led to the 20-year electricity supply agreements between New Zealand Aluminium Smelters (NZAS), Meridian Energy, Contact Energy, and Mercury NZ. Cabinet agreed to provide long-term certainty regarding the electricity emissions factor applicable to NZAS, which formed part of the broader policy and regulatory environment supporting the agreements. Following the commercial agreements being reached in principle, Meridian Energy, Contact Energy, and Mercury NZ sought clearance from the Electricity Authority under the materially large contracts provisions of the Electricity Industry Participation Code 2010.