The Lines Company gets warning, recovery plan to improve service to King Country, Ruapehu and Central Plateau customers

The power outages were a problem for central North Island customers, the Commerce Commission said. Photo / Bevan Conley

An electricity company has been told off for multiple outages and failing to meet minimum quality standards.

The Commerce Commission issued a formal warning to The Lines Company Limited (TLC), which connects 18,000 electricity customers across the central North Island.

The commission said TLC let its King Country, Ruapehu and Central Plateau customers down during outages in 2018, 2019 and 2020.

Andy Burgess, the commission’s general manager of infrastructure regulation, said a review and recovery plan was underway to help TLC improve its network performance and customer service.

“The agreed enforceable undertakings require TLC to have its network reviewed by an independent engineer, with that information forming the basis of a recovery plan that the company must deliver and report on.”

Burgess said the worst outages could be mostly attributed to poor processes and decision-making over several years.

“This is very concerning, given the resulting disruption to TLC’s customers,” he said.

“In our view, TLC’s failure to introduce more robust asset management practices at an earlier stage played a significant role in the extent of its breaches.”

These bad decisions and processes meant the network was inadequately safeguarded from known risks, he said.

“Our investigation concluded that there were many factors contributing to the outages, including significant adverse weather events, changes in live-line working practices, inadequate vegetation and poor asset management.”

Burgess said the commission and TLC were now focused on getting things right.

The commission had decided to accept a recovery plan and issue a warning letter.

It said Strata Energy Consulting carried out an independent engineering review.

That review found several areas where TLC’s practices fell below good industry practice.

TLC must now get an independent engineering expert to report on its network.

It must also create a plan to address the network and process issues identified in the report.

The company must also report annually on progress in carrying out the plan to improve the network.

And the commission said TLC should also consult with relevant groups and provide readily accessible information to consumers.

Waitomo Energy Services Customer Trust owns the company, which is based in Te Kūiti and also has a depot in Taumarunui.