"We did a pilot with them earlier this year and unfortunately that didn't go quite as well as we hoped," he said. "A month ago they came to the conclusion they weren't able to deliver on our expectations and decided to exit the contract. Their capability wasn't quite what they thought or led us to believe. Our position is that while it's disappointing, we are keen to get this up and running, and we'd rather they exit now rather than later."
Mr Hawksworth said the decision would not affect customers, but Trustpower would have to come up with a different approach. The preferred option was still to buy in the services rather than spend money on owning the meters, he said.
Chris O'Hara, Trustpower's general manager of commercial operations, said a wide range of other tender options was available, and that by a number of alternative AMI vendors had already approached the company.
The company had invested in software to support the rollout and would now focus on making sure it was compatible with a wide range of meter owners to ensure smart metering could be maintained when getting customers from other retailers, he said.
"A key thing for us is deploying our own internal operational model to allow us to interact with a range of meter owners to allow us to receive their data."