Last week, the Government confirmed it would spend up to $200 million buying new Genesis Energy shares. Three ministers lined up to explain the decision. It was about energy security. It was about stronger assets. It was about better outcomes for Kiwis. None of them mentioned the real reason. Under the mixed ownership model legislation, Genesis cannot issue new shares unless the Crown subscribes to maintain its 51% stake. The law makes taxpayers a forced buyer in every capital call. Private investors were ready to fund the raise. But the statute gave ministers no choice: pay up or block the company from raising capital altogether. That $200m could have funded a new regional hospital. It could have replaced water pipes in a dozen towns. Instead, it went to preserve a shareholding in a listed electricity company. Yet, since 1999, Contact Energy has shown that electricity companies can thrive under full private ownership.

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