Transpower believes it will not meet the revenue and profit targets for the year ending June 2015 implied in its statement of corporate intent.
Transpower has blamed the Commerce Commission for a reduction in the amount of profit it can earn. Photo: RNZ / Diego Opatowski
That is because of a number of Commerce Commission decisions, including a reduction in the amount of profit the national electricity grid operator can earn.
The Government-owned company said its fourth quarter revenue this year would be $19 million lower than estimated and that thereafter revenue would be at least $75 million a year lower.
The chief executive, Alison Andrew, said that would significantly reduce Transpower's profit in the current year and the following five years.
"The Commerce Commission made a sweep of decisions - the rate of return was one of them," she said."
"But collectively, that's where we have come to, the down-rating of our revenue."
Transpower, which has $465 million of bonds listed on NZX, had forecast that it would pay the Government a $188 million dividend for the year ending June 2015 and a $220 million dividend the following year.