Gas flaws posed serious threat: Enerco

By Andrew Stone

AUCKLAND - Dangerous flaws in gas connections to Auckland homes, schools and shopping malls were dealt with quietly by Enerco in 1997, despite public safety fears.

Aucklanders were not alerted to the potential danger, even though the company conceded that the state of the network posed a "serious and real threat."

The New Zealand Herald has read confidential company records which reveal some contractors cut corners in the race to connect thousands of customers under a $21 million "mains to flame" strategy.

Enerco hired teams of contractors to connect households for $99 in the 1996-1997 expansion drive.

Stainless steel pipe was used above ground, contrary to best practice, or laid near driveways where it could be run over. Pipes tacked on to fences or cast in concrete risked decay.

Connections which were meant to be laid 600mm underground were buried under shallow soil cover, posing an explosive hazard to contractors working on water, power or telephone connections.

Homes were connected so rapidly that Enerco lost track of pipe leaving its stores. At one point the company asked its contract managers to find 5.8km of the 11.2km recorded as having left its depots.

These serious faults are detailed in Enerco reports and Government documents obtained under the Official Information Act after whistle-blowing contractors complained about the safety of Auckland's gas network.

Gas experts who have audited the network say these fears are unfounded, largely because Enerco spent a lot of money fixing its network.

A report completed last year for the Ministry of Commerce, New Zealand's gas regulator, concluded:

"Overall the Auckland network is satisfactorily fulfilling its obligations as a gas distributor."

But this was not the case when an informant alerted gas inspectors in April 1997 to problems with the Auckland network.

The documents show that the Ministry of Commerce's chief gas engineer, Mehdi Yassaie, who has overall responsibility for public safety, immediately sought reports from Enerco. Mr Yassaie argues that a public warning "would not have been constructive or helpful."

Enerco set up a special audit team, telling the ministry: "This may prove to be an overkill approach but we prefer to err on the side of caution."

Hamilton consultant Barry Parsons investigated the network and told the ministry that scores of stainless steel connections were installed sloppily and in breach of standards.

He found that there had been no regular inspections, and concluded that Enerco contracts managers did not do a proper job "either through inexperience or contractor intimidation."

On his advice, Enerco paid special attention to areas of "higher risk" including malls, multi-storey buildings and schools.

Kevin Johnson, Enerco's chief executive during the expansion period, insists that problems with its gas network have been rectified and the network is safe.

Mr Yassaie agrees, though he considered prosecuting Enerco over the debacle. But he believes the use of poorly trained contractors was a costly lesson to the entire gas industry.

"There has to be more supervision and I'm working with utilities to ensure they offer adequate training."