Genesis Energy Limited (GNE) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. I'm Barbara Chapman, Chairman of the Board of Genesis Energy Limited. On behalf of my fellow Directors, our Chief Executive and his team and all Genesis employees around New Zealand, welcome to our 2020 Annual Shareholder Meeting. 2020 has been a challenging year for a number of reasons, but especially due to the COVID pandemic, which has restricted both social and business gatherings. In order to adhere to the NZX's Corporate Governance Guidelines, which require 20 business days' notice of holding an annual shareholders' meeting, we had to make an early call about the format for today's event. Uncertain at that time about the COVID level we would be at today, we needed to ensure we adhere to the government's COVID-19 safety guidelines and protect the health and safety of our shareholders, partners and staff who have historically attended in person. I thank you for your understanding and continued participation in today's virtual Annual Shareholders' Meeting. The Genesis Board has gathered today at Auckland's Eden Park, and we have carefully organized this event with our hosts to ensure this business gathering adheres to social distance and gathering restrictions. One of the key roles I enjoy as your Chairman is engaging with our shareholders. I welcome you all to make use of our online channels to provide your feedback and questions on our Board's performance. Computershare is our registrar, and they are here to support you with the formal aspects of today's meeting. Please reach out to them if you need help. Their contact details are in your notice of meeting and virtual meeting guide. Bryce Henderson from Deloitte is in attendance today as our company's auditor on behalf of the Auditor General. Your notice of meeting also includes a virtual ASM guide, which shows you how to use the Lumi AGM app to vote on today's resolution and ask questions during our Q&A session. I will also reiterate how these interactive features work when we reach those points in today's meeting. Notice of the meeting has been duly given to shareholders, and we have the required quorum. I now declare the Annual Shareholder Meeting of Genesis Energy Limited officially open. Thank you all for joining us today. I will quickly run you through the agenda for this morning. Firstly, I will provide a brief overview of the company's performance for the year to 30 June 2020, including the Board's key highlights for the year. Genesis Energy's Chief Executive Officer, Marc England, will then provide you with a more detailed overview of our company strategy and our targets for the coming financial year. There will then be an opportunity for you to ask any questions of the Board and the executive. Finally, we will move to the formal business of today's meeting. At that point, I will outline the process for the discussion and voting on the single resolution in the agenda. If there are any additional discussion points that you feel haven't been covered in today's meeting, please reach out to the Board directly at the e-mail address board@genesisenergy.co.nz. To begin, let me introduce you to your Board of Directors. Maury Leyland Penno joined the Genesis Board in 2016. She is a member of the company's Audit and Risk Committee and the Human Resources and Remuneration Committee. Maury is a qualified engineer and brings a wide range of governance and operational experience in large corporations and infrastructure companies. In particular, her skills focus on risk, crisis management, human resources and strategy. Thank you for joining us today, Maury. Tim Miles also joined our Board in 2016, coming to us from his previous role as Chief Executive of Spark Digital. He is a member of the Human Resources and Remuneration Committee and the Nominations Committee. Tim has had a long career in customer and technology-focused roles at the most senior levels, both within New Zealand and internationally, and applies that insight and scrutiny to all of the Board's work. Thank you for joining us today, Tim. Doug McKay joined our Board in 2014 and is a highly experienced commercial executive and director. He chairs our Human Resources and Remuneration Committee and is a member of the Nominations Committee. As well as his now extensive experience in the energy sector, Doug has also been CEO of numerous local and international companies, such as Lion Nathan and Goodman Fielder, and was the inaugural CEO of the supercity Auckland Council. Doug is presenting himself for reelection today. Thank you, Doug. Paul Zealand also joined our Board in 2016 and is a member of the Human Resources and Remuneration Committee and the Nominations Committee. Paul has over 40 years' experience in the oil and gas sector, including senior executive and chief executive roles at Shell and Origin Energy. In particular, he brings strong expertise around health, safety and environmental management, and advice around operational risk. Thank you, Paul. James Moulder joined the Board in 2018 and is a member of the company's Audit and Risk Committee. James has strong governance experience, having held a number of nonexecutive board and advisory board positions in the electricity sector. James brings strong industry experience in carbon and energy asset management and data analysis experience to your Board. His background advising the electricity industry's regulatory body also strengthens our governance. Thank you, James. Catherine Drayton joined the Genesis Board in March last year and is the Chair of the company's Audit and Risk Committee. Catherine is a former senior partner of PwC, specializing in mergers and acquisitions, culminating in her leading the Assurance and Advisory divisions in Central and Eastern Europe. Her extensive cross-sector governance experience includes directorships across the health care, infrastructure and energy sectors. This is Catherine's first appearance as a Director at a Genesis ASM as she was unable to attend last year due to preexisting commitments. Thank you, Catherine. Also joining me on the stage is Genesis CEO, Marc England, who will speak to you shortly; and our Chief Corporate Affairs Officer and Company Secretary, Matthew Osborne. Ladies and gentlemen, I'm proud to lead a strong and capable Board of Directors, each of whom gives generously of their time, providing their extensive experience for the benefit of the company, our staff, our stakeholders and the wider community. As New Zealand's largest energy retailer, maintaining service to our customers through the COVID-19 lockdown was crucial. This goes beyond business performance and speaks to our values and our behaviors, things I feel very strongly about in my role as Genesis Chairman. COVID-19 demonstrated firsthand why our values and behaviors are so important. Within 24 hours of Level 4 lockdown being declared, Genesis had its customer support teams up and running at full capacity from home, safely fielding calls from customers facing financial uncertainty and supporting them wherever possible. Their professionalism and calm demeanor during such a difficult period for many New Zealanders was recognized by those customers that we serve, with our research showing that Genesis saw a 12% increase in brand love amongst existing customers during COVID-19. In 2019, Genesis introduced new care packages to support vulnerable customers and those suffering hardship. These were strongly tested during COVID-19. Genesis also set up a dedicated service channel for vulnerable customers to offer tailored payment plans and a $250,000 care package with our partners to raise awareness of the support available from government. This vulnerable care program has been a big success, and the lessons learned will strengthen the program for the future, as Genesis expects the long tail of COVID-19's effects to resonate through 2021. We also used our relationships built through School-gen to partner with Mind Lab Kids and make online learning content available to New Zealand children throughout lockdown. This STEM-focused program kept kids busy during school closures, and more than 8,000 Kiwi families took up the opportunity in April and May. Market research showed that 76% of customers said Mind Lab Kids' partnership made them feel good about being with Genesis. One thing I think COVID-19 has highlighted for all businesses is the importance of strong corporate governance. Your Board spent considerable time this year ensuring best practice governance was applied to meet all stakeholder expectations during COVID-19. We, too, faced challenges we had not faced before. I'm proud to work with an excellent Board with a well-balanced skill set. Our good governance practices support and enable our operations, encouraging and monitoring good conduct and a great culture and support effective risk management and compliance. Genesis' Audit and Risk Committee, chaired by Catherine, has in particular been actively evaluating the effects of COVID-19 on the business and working with management to chart a course forward that mitigates these challenges. This ensured the business' continued effective operation as an essential service provider and helped give clarity and support in what were very uncertain times. At Genesis, we welcome the opportunity to challenge conventional ways of thinking. We believe there are performance metrics beyond profit and that we have a responsibility to our staff, local iwi and the wider community, both today and into the future. Genesis places particular importance on our relationships with iwi, both as tangata whenua and as a key part of the communities we operate in. Unfortunately, this year, a number of planned Board engagements with iwi were hampered by COVID-19 restrictions. Despite that, this year, the Board members were able to meet Nga Tangata Tiaki o Whanganui and Ngati Rangi, and we thank our iwi partners for constructively engaging with us. We will pick up on these important engagements again once COVID restrictions on gatherings in travel allow. Understanding and evaluating global energy sector trends is important to the continued evolution of our own energy strategy. So in late 2019, your Board took part in a strategic road show, visiting energy organizations in Houston and Frankfurt to learn more about how these deregulated markets operate and what we can learn from their business models and innovations. This trip was invaluable for looking at how these companies are trialing technologies such as hydrogen production, carbon sequestration, home battery manufacturing and micro-grids. Diversity and inclusion is important to our company. During the year, we worked to produce an inclusive workplace that embraces and promotes diversity and focuses on equal opportunity. Genesis launched its Inclusion Council this year, further adding to our diverse voices within the business. In November, Genesis announced the establishment of a local marae-owned entity called Pou Limited to undertake contracted facilities management activities at Huntly Power Station. This supports the local iwi via employment, sharing of cultural learnings and provides career pathways for local youth. This financial year also saw Genesis accredited as a Living Wage employer, including supporting our contractors in reaching this target. We were also GenderTick accredited by the YWCA and produced our first Gender Pay Gap Statement, reducing the median pay gap between males and females producing the same work to just 1.4%, down from 1.9% in 2019. This has been reflected in some strong results as Genesis was named as one of Human Resource Director Magazine's Employers of Choice for 2020. Before I hand to Marc to update you on Genesis' future strategy, I wanted to speak briefly about the environmental risk considerations central to our thinking as a Board. This year, the company is reporting its climate risks and opportunities in line with the recommendations of the Task Force on Climate-related Disclosures. This is the gold standard for climate risk reporting internationally. The TCFD framework offers a key opportunity for us to transparently explain our climate change-related business challenges to external audiences and how we can help New Zealand as a whole reach its climate change targets. I will leave Marc to discuss that further, but I would like to note that the Board and I believe in the potential for Genesis to take a leadership role in helping build New Zealand's low emissions economy, but built around affordable, reliable, renewable electricity. I have every confidence that your Board, overseeing a strong executive team, will position the company as an essential and profitable part of New Zealand's energy future while, at the same time, living up to the company's values and purpose. Along with my fellow Directors and our Genesis Energy team, I would like to thank you for your support of the company over the past year. And it's now my pleasure to invite your Chief Executive, Marc England, to speak. Welcome, Marc.

Kia ora, everyone. And thank you, Barbara, for the kind introduction and for providing an overview of some of the challenges and opportunities the company has faced in what has been a turbulent year. While it is tempting to think COVID is now mostly in our rear-view mirror, I think it's important to acknowledge that the effects on the economy will be long-lasting and stretch beyond this year. Barbara has already discussed the care packages we put in place since the first lockdown. We'll continue to support our people and our customers through difficult times ahead. I'm proud of how our teams have stood up and performed under pressure during a year dominated by the pandemic. This is testament to our strong team culture, resilience as a business and our ability to find innovative solutions to problems that our business has not faced before. The fact that our teams thought of using augmented reality technologies such as Hololens to carry out plant inspections remotely at our generation sites encourages me. These sorts of innovations have helped minimize the impact and disruption to our business from the COVID lockdowns and also enabled us to continue to deliver for our customers at the same time. My address today has 3 main elements: a summary of our financial and business performance in the 2020 financial year; the state of the energy market; and a discussion on where we're taking Genesis Energy next and why. As a business, we remain committed to maximizing shareholder value as we navigate the challenges associated with New Zealand's transition to a low-carbon future. At Genesis, we see our purpose is empowering New Zealand's sustainable future. But first, an overview of the numbers. Genesis' FY '20 EBITDAF was $356 million, down slightly on our half year guidance of $360 million. Our underlying earnings was $53 million, down from $64 million in FY '19. And in this period, Genesis delivered free cash flow of $168 million. Genesis has proactively protected shareholder value. The full year dividend amounts to $0.172 per share, up 1% on last year's $0.1705 per share. And Genesis is pleased to announce the continuation of its dividend reinvestment plan, introduced in the first half of FY '18, to provide shareholders a cost-effective way to reinvest in Genesis' growth. For a detailed breakdown of our FY '20 performance, I recommend you visit Genesis' website's investor center where our FY '20 investor presentation is available for you to review. In that presentation, Chris Jewell, our Chief Financial Officer, and I talk at length about the company's financial performance as well as the broader and underlying themes I'll touch on today. This year, we evolved the format and content of our Annual Report to align with the recommendations of the Task Force on Climate-related Financial Disclosures, which are widely regarded as international best practice. I'm proud that we have been proactive in this space and did not wait to be compelled to do so by legislation. This reflects our commitment to contribute to New Zealand's sustainable future. Adapting our Annual Report to meet with these recommendations has helped discipline our thinking to be more transparent about the potential effects of climate change on our business. This year's Annual Report is the first time as a publicly listed company that we've reported our Scope 1, 2 and 3 emissions and had them audited. We've also committed to setting a science-based target in respect of our Scope 1 carbon emissions before the end of the year. This will be another key milestone for the business and demonstrates the alignment between our low carbon transition strategy and the carbon commitments of the Paris Agreement. To deliver on the science-based target, Genesis has set a series of ambitious goals, including reducing our net emissions by 1 million tonnes over the next 10 years by contracting with or building 2,650 gigawatt hours of new renewable generation. This is the cornerstone of what we call our Future-gen strategy. The Waipipi Wind Farm, developed through our partnership with Tilt Renewables, is on track to come online between mid-November and February next year and will achieve the first 450 gigawatt hours of that goal. As significant and as distracting as the COVID pandemic has been, it is important not to lose sight of other far-reaching developments in our industry that will have consequences lasting well beyond the time of COVID. Earlier in the year, we saw extensive climate change protests across the world, and our government passed the Zero Carbon Act. We have since been -- seen changes to the Emissions Trading Scheme, ongoing discussions about the future of Tiwai Point and the announcement of the Lake Onslow pumped hydro proposal as well as an announcement from government that they will now target 100% renewable electricity by 2030 rather than 2035. Our industry and, indeed, New Zealand stands to benefit significantly from greater long-term policy certainty. Affording the industry this certainty is within the gift of policymakers. Ensuring policy clarity and alignment underpins investment confidence and will support New Zealand's low carbon transition over the next 10 years and beyond. I believe New Zealand needs more holistic thinking across all elements of our energy sector, and that includes a deeper debate on some important but challenging strategic questions, the answers to which carry significant implications that matter to all of us. For example: is shutting an aluminum smelter that constitutes 13% of national electricity demand an opportunity for New Zealand in the context of our national carbon reduction ambitions? Or is it a risk to global emissions? Is spending $4 billion or more on a new dam at Lake Onslow the best way to encourage more renewable investment by the private sector? Or does it scare it off? Is using the Emissions Trading Scheme to aggressively increase the price of carbon and, thus, electricity prices really going to encourage industrial consumers to electrify? Or does the prospect of more expensive electricity make them defer those much-needed investments? Finally, is pushing earlier than previously signaled to 100% renewable electricity before electrifying other sectors going to be an enabler of New Zealand's decarbonizing or derail and delay us from that path? We all need to give deeper consideration to the interdependencies across multiple sectors. It is too easy to look at each of these decisions in isolation. There is an opportunity here, I feel, that is being missed. So where we are right -- where are we right now? It's worth remembering that New Zealand already has one of the most renewable electricity systems in the world at 82%. Compared to other markets such as the U.K., Australia and Germany, we are well ahead. In the OECD, only Norway and Iceland are more renewable than New Zealand. We believe that the electricity market will get above 90% renewable on its own via natural market forces. And closure of the Tiwai aluminum smelter, if that were to occur, would present a potential opportunity to accelerate this, despite it increasing global emissions for aluminum as the demand is taken up by more of the more polluting smelters overseas. There is enough independent research, including from the government's own Climate Change Commission, to show that single-mindedly chasing the last few percent to get to 100% renewable electricity in such a short time frame is likely to be self-defeating. It will likely increase price volatility and reduce investment certainty, vital for the kinds of long-term renewable investment planning the government desires. A more expensive and unreliable supply of electricity will produce an inverse effect to the one desired. It distinctivizes other industries -- sorry, dis-incentivize other industries from their own decarbonization. It becomes too risky for them to invest if there is no guarantee of return. It is important to remember that electricity generation accounts for just 4.2% of New Zealand's total carbon emissions. This comprises or compares to 47.8% for agriculture, 21% for transport and around 20% for industrial processes and manufacturing. As I've already noted, companies in these important sectors are also craving certainty. Farmers and dairy producers, for example, have waited for decades to get certainty from the government around their place in the Emissions Trading Scheme. New Zealand has achieved a highly renewable electricity market we have with minimal government intervention or subsidies. It has come through the application of natural market forces, allied with sound economic thinking. Other electricity markets around the world have been thrown from pillar to post by well-intended but ill-thought-out government interventions and subsidies, which have ultimately driven up costs for consumers either through their energy bill or through taxes. There is little argument that thermal baseload generation has had its day. No one is investing in developing new thermal baseload generation anymore, including Genesis. But it is just as clear to us that the backup generation provided by our Huntly plant has an essential role to play in supporting the transition of New Zealand's industry to a low-carbon future by enabling a reliable and affordable flow of electricity at times when the renewable components of our electricity system are affected by fuel supply constraints, whether occasioned by unfavorable weather or other fuel supply interruptions. When the rain doesn't fall or the wind doesn't blow, the risk of these interruptions is very real. The good news is the costs of renewable generation are already comparable to those of baseload thermal generation. However, the last major hydrology build was Clutha dam in 1992. That's nearly 30 years ago. This highlights some of the problems around getting resource consents to develop these kinds of renewable projects. An additional focus needs to be reform of transmission pricing that removes what we call the first-mover disadvantage, that is, whoever builds first pays for the connection to the grid. Anyone else that follows benefits from that initial investment at a fraction of the cost. It is important that our industry, working in partnership with the government, brings adequate focus to the opportunities on the demand side of the equation to enable us to reach our national carbon targets through electrification. Genesis would like to see more support for EV adoption as a quick start to decarbonizing transport. The government has an opportunity to lead the way through centralized EV procurement of the government fleet. And local councils should be moving away from diesel-powered public transport, and we should be welcoming any other new government action to encourage EV uptake more broadly. Genesis has made considerable efforts to take a leadership position in this space ourselves. 42 of our 50 light-vehicle fleet are currently EVs or hybrids, and we're on track to have our passenger fleet of cars 100% converted to EVs by the end of FY '21 and 50% of our commercial vehicles converted by 2025. As with many local businesses, when it comes to industrial or heavy vehicles, the EV options available to us are limited, but we expect this to change quickly and will begin testing EV trucks for LPG delivery in 2021. Our 40% ownership stake in Zilch EV car share will also be boosted by the move of our Auckland office to the new premises in Wynyard Quarter, where we'll roll out Zilch out to the local community and encourage its use in our teams as they commute. Genesis will also encourage low-carbon public transport use as part of this move, and no staff car parking will be available to support driving positive behavioral change amongst our own employees. Our new Wynyard Quarter premises are situated in a 6 Green Star-rated building that has been designed to the highest sustainability standards, including its own solar power management and battery system run by Genesis. Genesis also helps manage Emirates Team New Zealand's base as official energy partner, building and managing its roof-based solar panels and battery system. This is the first installation of curved solar panels in New Zealand and demonstrates the viability of industrial-grade solar power. We are proud to be directly supporting Emirates Team New Zealand in their 2021 America's Cup defense. National electricity consumption increases by about 1% per year. And if we do increase the electrification of transport, industry and manufacturing, that will rise more quickly, which, in turn, means we need to continually evaluate and invest in further generation development. To support a more sustainable New Zealand, we also need to inspire the energy innovators of tomorrow. And we are always seeking new ways of engaging our customers, giving them greater choice and control over their energy usage. This, too, will reduce the strain on the grid. For example, Genesis' customer engagement app, EnergyIQ, allows users to forecast their energy usage over 7 days based upon machine learning algorithms so they can adjust their energy use accordingly. It also provides energy saving tips and home comparison functionality, snippets of advice to help users be more energy efficient in their homes, reducing their power bills and their overall carbon footprint. Genesis also launched a new feature in EnergyIQ last year called EcoTracker, which allows users to view New Zealand's electricity generation emissions in real time. This enables customers to make decisions on when best to perform energy-intensive tasks, such as running dryers and dishwashers. As of May, EcoTracker had 55,000 unique users. All these features are not just about the mechanics of electricity demand management. They are what our customers are demanding from their providers. These features increase customer satisfaction and our brand reputation. With it, we increase customer engagement and loyalty. Over 77% of our customers are now choosing to interact digitally, and Genesis' residential gross customer churn was down 3.5% to 24% last year. This is proof that our retail strategy is working and continuing to improve year-on-year. Soon, we'll be rolling out advanced gas meters to our customers. This will enable gas customers to see much more data about when and how they consume gas, more aligned to what they see for electricity today. It will also allow us to provide customers with much more insight comparing the different energy choices they have in their homes. As we seek to empower New Zealand's sustainable future, use cases for EnergyIQ could be providing our customers with the cost and carbon trade-offs between a heat pump and a gas fireplace or an internal combustion engine versus an electric vehicle. We'll empower our customers with the information they need to make the choice that works for them. To conclude, Genesis is a consistent and reliably performing company with a strong, credible management team that executes the company's strategy well and delivers to our stated objectives. Genesis' diverse generation portfolio of wind, hydro and thermal also enables us to be more flexible in the support of the market and consistently deliver good returns to investors regardless of the weather. At the same time, we have a responsibility to call out the challenging industry issues that I have highlighted today. These include the overriding importance of a policy environment that provides certainty for investors and consumers alike. That includes systematic thinking across sectors instead of siloed thinking within one sector. After a year shaped by the profound economic uncertainty of a global pandemic, surely, there is now a premium on providing certainty and clarity in a sector as important and enabling as energy. This matters to all of us. Genesis is not standing still in our efforts to empower New Zealand's sustainable future. Our flexible generation portfolio, the essential backup role of Huntly and the myriad of innovations we have brought to our customers are a compelling demonstration of how Genesis is supporting our customers, large and small, to make the choices that matter to them. We remain committed to our long-term strategy, and thank you for your support. I'll now hand back to Barbara.

Thank you, Marc. We now have an opportunity to take questions on the company's performance for the year ended 30 June 2020. Questions are now open. So please use the question functionality within the Lumi AGM app. Depending on whether you are viewing this on your computer or via the smartphone app, the layout may be slightly different. But to ask a question, you press the speech bubble icon and enter your query. We also have members of the executive here to address specific operational queries you may have. We will attempt to get through as many questions as we can in the allotted time. But if you have any questions we don't have time to address today, please contact us at board@genesisenergy.co.nz. When asking your question, please make sure that you enter your full name. We recognize that this is the first time you might have done this. It's also the first time we have done this. So let's work together and get through as many questions as you may have in the time that we have.

So we have one question from a shareholder, [ Kenneth Hawkswood ]. A question for the Board, are they considering the production of hydrogen as a use for power when Tiwai Point closes? I believe power and water are involved. Power in New Zealand's low-carbon future is going to require a range of storage and fuel options. Hydrogen could be one of those, but it's still relatively immature technology. As I mentioned, the Board looked at hydrogen when we went overseas. And large-scale green hydrogen production is not currently something that we are focusing on, but we will consider the opportunities that hydrogen could provide as the technology develops and becomes more proven. We have another question from a shareholder, [ Michael ] and [ Pamela Stonely ]. Thank you for your questions. The question is, there seems to be a minority of directors on the Board with skills or technical knowledge gained from working in the energy sector. What plans has the Board put in place to recruit future directors with executive backgrounds in the energy sector? Actually, a number of our directors have executive or director experience in the energy sector. Maury Leyland Penno has been the Director and Consultant for Transpower. Paul Zealand has worked for New Zealand Refining and Lockheed Energy. James Moulder held the role of GM Trading and GM Retail and Generation at Mercury. Catherine Drayton was previously a Director of Meridian Energy. And Doug McKay has been on our Board now for over 6 years. So I think we're pretty well covered for sector experience. We review the skills of the Board periodically, and we're comfortable that we do have a strong mix of experience and skills amongst our directors necessary to support the business. There's a question from the New Zealand Shareholders' Association. NZSA has reservations about Mr. McKay's apparent intensive work schedule at this critical time for directors. Could Mr. McKay comment on this aspect when he addresses the meeting, please? I'm sure Doug will cover that, but I'd like to say that as a group of directors, I could not ask for more time commitment or more overall commitment from anyone. This is a very committed team. People like Doug actually bring experience at a time like COVID that they've learnt in other parts of the portfolio that they have to bear on our business. And some of those cross-sector experiences and the way that Doug can bring that to the Board, I really value. So we have a question from Mr. [ Neil George Anderson ]. It's quite a long question, so bear with me while I read it. It is not true, as stated in the CEO's address, that in fact the last hydro development 30 years ago at Clutha was, in fact, funded by the government, not the private sector? I'm sorry I should have read that differently, is it not true that it was, in fact, funded by the government, not the private sector? How come then he also stated that it is the private sector that is developing and should be left to developing renewable generation and government should stay out of it? At the same time, he seemed to throw a wet blanket over the Lake Onslow idea, which, of course, is a hydro backup plan. So can we conclude that Genesis is not going to plan to invest in any hydro ideas in the future? Marc, can I get you to take that one, please?

Neil, yes, I didn't -- I may have inferred. Apologies if I inferred that it was a private sector investment in Clutha. It was, of course, the government at the time. But we now have an industry that is largely privatized. We still have the government, the shareholder and the 3 of us, but we've also -- we've been privatized, to a large extent. So the challenge is, if the government decided to invest in new power generation, the challenge that presents the private sector as you bring in a government player into an otherwise private sector, which undermines confidence in private investment, that's the issue. We do not throw a wet blanket over the Onslow idea. We actually think and we supported when the government came out with the announcement because, for us, it was the first time we had acknowledgment of what we call dry year risk. And we have this challenge in New Zealand which is twofold: one is that we can chew most of our electricity in winter when we have the least inflows into the lakes, so we have an energy gap that needs to be filled with something; and the second challenge we have is our lakes generally have very little storage. So Onslow may support that, may solve that problem, but we think the review that is done should be broad enough to look at all the different possible ways of solving the dry year risk issue and not just point to one possible solution. It's going to be important for New Zealanders for decades to come that we find the best balance between the economic cost of the solution and what it actually delivers for the sector around security of investment. But of course, back to the beginning, if you have a government investor in a sector that's otherwise largely privatized, private money won't flow into investment that is also needed in other aspects, too. So I hope that answers your question.

And thank you for that question. We now have another question from Mr. [ Warwick Gold ]. Will you be offering any plans to roll out solar panels and Tesla batteries for homes?