New Zealand Aluminium Smelters and Meridian Energy have signed an 18-year electricity price agreement for 572MW of continuous consumption.

The agreement will take effect January 1, 2013 to December 31, 2030. The new agreement provides New Zealand Aluminium Smelters (NZAS) with the basis for a secure and reliable power supply to meet its operational requirements during this period.

Keith Turner, CEO of Meridian Energy, said: The agreement has been reached and there is now clarity on the future of Meridian’s relationship with the smelter. This contract covers a very large quantity of base load – 100% continuous – electricity over a very long time, and the negotiations have been hard and tough. Both sides should be congratulated on reaching this outcome. It is also important for the whole electricity industry to know well in advance so we can plan with confidence.