The company generates 24% of New Zealand's electricity and has the second largest market-share of the country's electricity-retailers. Electricity is generated from the Roxburgh and Clyde hydro-electric dams in Otago generate hydro-electricity, and geothermal and natural gas-fired power plants operate in the North Island. Contact has a strategy to invest up to NZ$3 billion in new renewable energy electricity generation projects and in projects that support greater levels of renewable electricity generation.

Contact Energy originated with the partitioning of the Electricity Corporation of New Zealand in 1996, and publicly listed in 1999. The Australian energy company Origin Energy holds a 51% shareholding in Contact Energy.

Contact Energy owns and operates the following New Zealand power stations:

Contact also owns 25% of the Oakey power station, a 280 MW gas turbine (near Toowoomba in Australia).

In 2006, Contact set up a joint venture (with Genesis Energy) project called Gasbridge to provide an option to import LNG. Their proposed terminal at Port Taranaki was highly controversial, and the plan was shelved in favour of an offshore terminal plan in mid 2009.

Contact and Origin Energy are developing a gas storage project at the depleted Ahuroa reservoir in Taranaki.

Contact has indicated it intends to begin public consultation on hydro developments on the Clutha River, at Queensbury, Luggate, Tuapeka and Beaumont.

Contact Energy was established in February 1996, comprising assets from ECNZ. As the founding chief executive, Paul Anthony was instrumental in establishing the corporation distinct from ECNZ.

In 1999, the company was sold in a public offering of shares, with 40% purchased by Edison Mission Energy (EME) as cornerstone shareholder. EME subsequently increased its shareholding to 51%.

Following financial difficulties elsewhere in its business, EME onsold its shareholding to Origin Energy in 2004.