National electricity grid operator Transpower today announced a reduced surplus of $108 million, blaming system upgrade problems and low hydro lake levels.
The annual financial report for the 2007/2008 year revealed the lower figure for the State Owned Enterprise, compared with the previous year's surplus of $134m.
Transpowerchairman Wayne Brown said the two main reasons were an impairment of the value of 'System Operator assets' - problems meant a computer upgrade project was a year behind schedule - and significantly higher HVDC (high voltage direct current) reserve charges, brought about by low levels in the southern hydro lakes.
The need to fund an extensive capital works programme meant no dividends would be paid to the Government this year.
"The year was marked by advancing necessary investment in the grid and addressing key regulatory issues including reaching a final administrative settlement with the Commerce Commission," said Brown.
"During 2007/08, Transpower made significance progress towards strengthening the national grid, with several major projects approved by the Electricity Commission. A large number of other projects to improve the capacity and reliability of the grid were also initiated, progressed or commissioned."
A $5 billion investment programme was planned over the next 10 years to upgrade the national grid in order to meet future demand and enhance Transpower's system operator capabilities.
An extensive replacement and refurbishment programme of ageing assets will also make up part of this investment programme.
Another important project established in 2007/2008 was Transmission 2040 - a project established to produce a long term, strategic vision for the national grid.
Brown said Transmission 2040 would produce a strategic plan on how to carry out works to ensure a secure and robust grid.
