Genesis chief executive Murray Jackson yesterday said the contracts were an indication of the importance large customers were now placing on surety of supply. Fletcher Building is one of New Zealand's largest electricity users, consuming around 480 Gigawatts per annum.

"Genesis has a strong relationship with Fletcher Building and we are pleased to be able to provide long-term contracts that meet their energy requirements.

"Genesis is also working with other customers who are reviewing their long term supply options, including the feasibility of embedded generation projects," said Jackson.

During the recent winter power crisis, Genesis and Fletcher Building-owned Pacific Steel were able to work together to ensure Pacific Steel continued production with changed operating arrangements.

Terms and conditions of the contracts - which start next month and will cover more than 85% of the Fletcher Building's forecast New Zealand consumption - are confidential.