$1.4B power upgrade plan unveiled

Many of the poles and wires which make up the bulk of New Zealand's electricity networks were installed in the 1950s and 1960s. File photo.

Powerco is planning to invest $1.4 billion in upgrading the electricity networks supplying Coromandel, Eastern and Southern Waikato, Western Bay of Plenty, Taranaki, Whanganui, Manawatu, Tararua and Wairarapa.

The investment programme spans a five-year period from April 1, 2018.

In a proposal released today, Powerco chief executive Nigel Barbour says the proposal reflected Powerco's commitment to regional New Zealand and would underpin future economic growth in regional New Zealand for many years to come.

Powerco distributes electricity to more than 320,000 homes and businesses across the North Island.

Many of the poles and wires which make up the bulk of New Zealand's electricity networks were installed in the 1950s and 1960s.

Nigel says the programme will see these ageing assets upgraded and replaced with more modern and resilient equipment.

'Our team of engineers, based in the areas we serve, have developed a detailed programme of works which will replace 27,500 poles and crossarms over a five-year period, as well as 1600km of overhead lines.”

Nigel says Powerco had prepared detailed regional investment plans to future-proof fast-growing areas such as Tauranga, as well as replacing old equipment in areas from Wairarapa in the south east, to Coromandel in the north and coastal Taranaki in the west.

Funding the investment programme will require a small increase in the price Powerco charges for electricity.

Powerco estimates the increase will be approximately $1 to $1.50 per household per week.

Any price increase needs the approval of the Commerce Commission.

He says an application will be lodged with the Commission later in 2017, but first communities in all of the areas affected will be consulted and given the opportunity to provide feedback.

The investment plan aims to do three things:

  • Keep regional New Zealand's electricity networks safe and resilient
  • Ensure regional New Zealand's electricity networks are secure and able to manage and enable economic growth
  • Future-proof regional New Zealand's electricity networks to enable customers to take up the benefits from a range of emerging smart grid technologies

The Commerce Commission is expected to review Powerco's plan and feedback from interested parties and make the final determination later this year.

People wanting more information should visit www.yourenergyfuture.co.nz

Bay of Plenty Regional Investment Overview (see graphic below)

Powerco plans to spend about $50 million on regional growth and security related projects in this area during the next 5-7 years.

As part of this proposed investment plan Powerco intends to spend a further $90 million on asset renewal, including the replacement of 350km of overhead line and 4,700 poles.

Powerco has invested extensively in the Bay of Plenty region in recent years.

The pace of both residential and industrial commercial growth has been significant and this has put material pressure on both the capacity and security of Powerco's networks in the area.

'The region supports high levels of primary production, particularly horticulture, is also significant for the expected future growth in electricity demand.

'Around Te Puke there are a large number of kiwifruit orchards, and strong recent growth in the sector is anticipated to continue,” says Nigel.

'High rates of growth in the region have created reduced available levels of security on local networks and some areas are now more vulnerable to failure of key network equipment than we would like.”

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2 comments

The end

Posted on 17-01-2017 17:54 | By Merlin

The end user always pays.Wonder what their profits were and whether it should include their upgrades.


So

Posted on 17-01-2017 19:28 | By Capt_Kaveman

Thats what profits are for upgrades but oh no we will charge more


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