17 May 2011

Hydro sale nets $521m dividend for Government

1:13 pm on 17 May 2011

Meridian Energy will pay the Government a special dividend of $521 million.

The payout is due to the sale by Meridian of two hydro stations in the South Island to Genesis Energy, as part of a Government-mandated change to boost competition.

The Tekapo A and B stations changed hands for almost $821 million.

Meridian Energy chief financial officer Paul Chambers says a balance has been struck between an appropriate dividend payout and retaining some funds to pay for future power projects.

Mr Chambers says Meridian Energy's proposed Project Hayes windfarm in Otago is still progressing through the resource consent process.

Another proposed windfarm at Mill Creek in Wellington is before the Environment Court.