Northland power cut: Businesses want compensation from Transpower

Northland businesses are tired and angry with the region’s failing infrastructure, and want compensation from Transpower for the latest power cut.

More than 100,000 homes and businesses had their power cut on Thursday after a transmission tower toppled over. Some large Northland businesses continued with low or no power over the weekend, to ensure the lights could stay on for the majority.

Grid operator Transpower replaced the tower with a temporary one on Sunday and hoped to get a permanent fix in time for the Matariki long weekend.

It said the fault occurred during routine maintenance by contractor Omexom on the base of the tower holding Northland’s two 220kV lines.

The contractors were cleaning the nuts, which secure the tower to the base plate on the ground, and removed too many nuts at once, causing the tower to topple over, Omexom NZ chief executive Mornez Green said during a press conference on Monday.

The normal procedure is to remove the nuts on one leg at a time but three legs of the tower had the nuts removed, he said.

It was fortunate nobody died, Green said.

Ongoing investigations will look at whether the workers involved had the correct training and how much pressure they were under, he said.

As for compensation, Transpower chief executive Alison Andrew said under the Consumer Guarantees Act, customers can apply for compensation through their electricity retailer, which can work with Transpower and power providers on compensation.

Any compensation would be a win for businesses suffering from low cash flow and not wanting to have to pay insurance excess.

NorthChamber hastily organised a special meeting for business owners and community leaders on Monday, to share their thoughts and frustrations with Northland MP Grant McCallum, who planned to take these messages back to Parliament.

More than 50 people attended either in person or online, including Transpower executive general manager for grid delivery Mark Ryall.

Transpower chief executive Alison Andrew and Omexom NZ managing direct Mornez Green explained how the tower fell over after contractors took too many bolts out from its base plate. Photo / Michael Craig

Ryall apologised for the power cut and explained why power generation at Top Energy’s Ngāwhā site wasn’t immediately able to work when the power went out, as it needed some power in the grid to synchronise to.

However, once it was connected to Northland’s back-up 110kV line, it could generate enough to keep most of the region running, he explained.

However, the impact on large power users was massive.

Cameron Bell from Kaitāia engineered timber manufacturer Juken New Zealand said it cost his company several hundred thousand dollars and could be the straw that breaks the camel’s back for continuing in the area.

Cement manufacturer Golden Bay was still not operating at full speed on Monday, because its kiln takes more than a day to fire up after being off.

General manager Ben Marsh asked Transpower if Northland was getting its fair share of maintenance, given the high costs Northlanders pay, with businesses having to pay more over the last four years.

The downed pylon, at Glorit north Auckland, brought down power to 100,000 Northland homes and businesses, and ongoing pain for many businesses. Photo / Michael Craig

Ryall said Northland’s conductors are in good shape.

Transpower executive general manager customer and external affairs Raewyn Moss said Transpower’s pricing method is set by the electricity regulator but is based on “beneficiary pays”, which means an area that benefits from an investment pays for it.

This means if Northland was to have more resilience on its power grid, Northlanders would have to pay for it.

NorthChamber president Tim Robinson said it was disappointing no one representing business was at the high-powered meeting in Whangārei on Friday with Energy Minister Simeon Brown.

McCallum agreed at least NorthChamber could have been at the meeting to represent businesses.

He said the Government’s fast-track legislation will be one way to get more infrastructure in Northland, as well as Roads of National Significance such as a replacement for the Brynderwyn Hills.

But McCallum also agreed on the need for unity in Parliament, such as getting bipartisan buy-in on big infrastructure projects so they can be planned and committed to over the long-term.

He was encouraged Green MP Hūhana Lyndon attended the meeting and said more cross-party agreement would help.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.