Power to Northland as Transpower agrees to power cut goodwill payment, MP says

Transpower appears to have made an about-turn over compensation payment for the Northland power cut, which plunged the region into darkness on June 20.

The power cut was caused when contractors removed too many nuts on a high-voltage tower at Glorit, north Auckland, causing the tower to topple over and take out Northland’s two 220kV lines.

The electricity failure is thought to have directly cost businesses $60 million, as well as damaging Northland’s reputation.

But when NorthChamber approached Transpower about compensation for businesses, chief executive Darryn Fisher was “coldly” told the provider had no obligation to give any direct compensation or support, and businesses should make an insurance claim.

But National MP for Northland Grant McCallum said Transpower leaders have now agreed to a community goodwill payment of some form.

He met with acting chief executive John Clarke and executive general manager customer and external affairs Raewyn Moss on Tuesday.

“I had a very constructive meeting - they agreed that they owed Northland,” McCallum said.

Northland MP Grant McCallum says Transpower has a moral obligation to pay Northland for the power cut. Photo / NZME

“Whilst it’s not the same [as direct compensation], it’s an indication that they are prepared to look at things.”

McCallum said Transpower made an offer, but he believed the payment should be about 10 times more. The executives said they would take this to Transpower’s board for a decision.

“We’ve got a way to go, on what I think they need to get to and what they’re offering.”

McCallum said the situation is unlike any previous event, as it was caused by “incompetence and negligence” by Transpower and its contractor.

Transpower’s Clarke agreed it was a constructive meeting with McCallum.

“We will continue to engage with him and other community representatives over what we can do to support communities in Northland, given the challenges they have faced recently.

“We will make an announcement when we are in a position to do so.”

McCallum said details about how the amount would be paid out to Northland residents and businesses has not been discussed yet.

He originally suggested Transpower discount transmission charges to Northland for a year. However, this proved too complicated, as power pricing is set by the Electricity Authority.

He said an organisation like Northland Inc might be best placed to administer any payment on behalf of Te Tai Tokerau. The regional development agency has some experience in this, as it distributed government payments to those impacted by Cyclone Gabrielle.

The Northland power cut on June 20 was caused by contractors removing too many nuts from the base of a transmission tower, resulting in it toppling over. Photo / Michael Craig

Meanwhile, Transpower said its temporary fix for the fallen tower is robust enough to provide security of supply.

The toppled tower was replaced by a temporary tower supporting one 220kV circuit, and three steel poles supporting the second, said executive general manager grid delivery Mark Ryall.

“The fallen tower will be replaced in due course with a new, permanent tower. We have progressed design work for the new towers but we don’t have a timeframe for when the work will be completed,” he said.

“I’d like to assure the community that the temporary structures are sufficiently robust and resilient to provide for security of supply until the permanent fix is in place.”

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.