In the last week two small players have been swallowed up by big generator/retailers. Yesterday Z Energy sold its electricity retail arm Flick - and its customer book to Meridian, in a $70m deal.
Flick is expected to be shut down. Last week, the Commerce Commission granted clearance for Contact Energy to take over smaller generator Manawa Energy in a $1.9 billion deal, saying it will not substantially lessen competition. Meanwhile consumers are seeing their power bills rising.
The Ministry for Business Innovation and Employment is conducting a review of competition law - could and should this change the test for such acquisitions, to boost competition, especially by smaller players. Kathryn speaks Consumer NZ's Chief Executive Jon Duffy, and independent energy analyst, William Bisley, who made a submission to the Commerce Commission on the Manawa deal.
Photo: RNZ
