Contact Energy

Natural disasters in New Zealand

Natural gas market price increase. It's a risk because the firm is in gas wholesale and retail business

Schwache Entwicklung wegen fehlenden behördlichen Gemehminungen für neue Einrichtungen

1. Reliance on Thermal Generation: Contact Energy relies heavily on the use of thermal generation plants to meet their electricity needs. This leaves them vulnerable to market fluctuations and increases in the cost of fuels such as coal and gas.

2. Competition: Contact Energy faces competition from other electricity generators in New Zealand. These competitors have access to newer technologies, which may put Contact Energy at a competitive disadvantage.

3. Political and Regulatory Environment: Contact Energy’s business is heavily impacted by both the political and regulatory environment in New Zealand. Changes to regulations and policies can have a direct effect on the company’s profits.

4. Natural Disasters: New Zealand is prone to natural disasters that can impact the company’s power generation and operational efficiency. For example, earthquakes and extreme weather events can lead to power outages and damage to Contact Energy’s infrastructure.

5. Cybersecurity: As a large utility provider, Contact Energy is vulnerable to cyber-attacks that can impact the security and reliability of its power supply. The company will need to invest in cybersecurity measures to protect its IT infrastructure.