KEY POINTS:
Transpower said today unplanned interruptions to supply were well above target due to ageing systems.
The state-owned enterprise, owner and operator of the national electricity grid, today reported its December half year operating surplus fell to $51 million from $74.7m a year earlier.
Chairman Wayne Brown said it was unfortunate the number of unplanned interruptions in the last six months exceeded targets, as limiting interruption to electricity supply was a key focus.
"This result largely reflects some of the increasing challenges of operating in an environment where the system is becoming increasingly loaded, and many of the assets are aging," he said.
"As the assets get older, greater maintenance is required, however finding an appropriate time to take the equipment out of service is getting harder due to high load growth."
The company said it made good progress on planning and implementing necessary investment in the grid during the six months.
A five-month inquiry into a plan to put giant electricity pylons to carry high voltage lines through Waikato began in Hamilton today.
More than 1000 submissions are expected to be placed before a Resource Management Act board of inquiry into the $683m plan for 200km of 70m-high pylons to run a 400kv line from Whakamaru to Auckland.
The line has been vehemently opposed by farmers along the route.
Transpower said the financial result reflected the costs of the Market Systems Project (MSP), which were not expected to be fully recovered from the Electricity Commission.
Transpower said the MSP project was critical to the electricity industry as a whole, as it would improve the ability to deal with the increased complexity of load growth and increasing amounts of renewable generation.
Capital expenditure over the period was $156m, an increase of $21.3m.
Operating expenses rose by 15 per cent to $125.8m compared, reflecting increases in maintenance expenditure for the grid.
Proposals to upgrade the National Grid, worth around $548m, were submitted to the Electricity Commission. Nearly $1 billion was approved for planned works previously submitted.
Mr Brown said Transpower addressed a number of trouble spots on the network in the past six months by improving voltage support, upgrading substations, building new switching stations and upgrading existing transmission lines.
"This work, combined with the investment programme underway, will help strengthen the National Grid and increase reliability and security of electricity supply to homes and businesses throughout New Zealand," he said.
- NZPA
