Top Energy delivers a strong result in a challenging year
• Resilient financial performance: EBITDAF was 5.3% higher than last year and 0.7% above budget.
• Responding to disruption: Top Energy managed several significant network and generation events, including ex-cyclone Tam, equipment failures and the impacts of strong solar growth.
• Investing for the future: The Group continued to invest in local capability, network renewal and future generation opportunities at Ngāwhā.
The Top Energy Group has delivered a resilient result for the 2025/2026 financial year, despite a demanding operating environment and several significant events across its network and generation businesses.
Top Energy Chief Executive Russell Shaw said the year had tested the resilience of the Far North’s electricity system.
“This has been a challenging year operationally, with major weather events, equipment failures and the rapid growth of two-way energy flows from solar all placing pressure on the network.
“Our teams responded well, restoring supply, managing system impacts and maintaining continuity of service for Far North consumers.”
During the year, the Top Energy network experienced several significant events, including ex-cyclone Tam, the failure of core 33kV switchgear at Kaikohe, transmission capacity constraints associated with strong solar growth, and a lightning strike at the Kaitaia 110kV substation.
Network reliability was impacted, with 398 unplanned SAIDI minutes compared with an internal target of 294 minutes. The result was just under the regulatory cap of 399 minutes.
Mr Shaw said the result reflected both the challenges of the year and the increasing complexity of operating the network.
“The electricity system is changing. More consumers are generating and exporting electricity, and that means we need to keep adapting how we manage capacity, protection settings and reliability across the network.”
The Ngāwhā generation business also managed several operational events during the year, including two turbine bearing failures at OEC4. Response times continued to improve, reducing outage duration by more than 30%.
Investment continued at Ngāwhā, including replacement of a generator commissioned in 1998, installation of the final gas reinjection pumps at OEC3 to increase output by 1MW, and work to support the business case for the next phase of generation expansion.
“Ngāwhā remains central to our long-term strategy and continues to provide significant value for Far North consumers,” Mr Shaw said.
Top Energy also continued to invest in local capability, with headcount increasing to 197. Seven new line mechanic trainees joined the business, five trainees completed their qualifications, and two engineering graduates commenced.
“We are continuing to grow local talent and build the skills needed to support the Far North’s energy future,” Mr Shaw said.
Energy hardship also remained a focus, with Top Energy strengthening partnerships with Te Pūtahi-Nui-o-Rehua and CBEC to support informed consumer decision-making and access to appropriate retail options.
Financial results for the year 2025/2026
The Top Energy Group’s EBITDAF was 0.7% above budget and 5.3% higher than the previous year.
Revenue increased by 6.4% or $6.9 million. Network revenue increased by 15.3% or $7.3 million, driven by the 2025–2030 regulatory reset, Transpower increases and a small increase in overall consumption.
Electricity sales from Ngāwhā Generation were lower by 2.9% or $1.5 million, with total generation output reducing to 423.4GWh and average wholesale prices lower than the previous year.
Operating expenses increased by 7.5% or $3.8 million, reflecting the Group’s continued investment in people and field resources, along with a $1.8 million loss on the disposal of carbon units.
The year’s performance increased equity by $66.9 million, including a $53.3 million non-cash derivative adjustment required under accounting reporting standards.
The Group met or exceeded all but one of the financial targets set out in its Statement of Corporate Intent.
“These results show the resilience of the Group in a demanding year,” Mr Shaw said.
“Our focus remains on balancing investment in reliability and growth, maintaining appropriate debt levels, and minimising price increases for Far North consumers.”
Click to view Top Energy’s Annual Report.
For more information contact:
Philippa White
021 241 8740