Price hike looms as Powerco invests in network

Powerco is investing $1.4 billion in its network over the next five years.

Powerco customers could pay more for their electricity as the utility looks to fund a $1.4 billion upgrade of its network.

The company said customers could pay up to $1.50 per week per household more for electricity and that it would seek Commerce Commission approval later this year.

"Many of the poles and wires which make up the bulk of New Zealand's electricity networks were installed in the 1950s and 1960s and this programme will see these ageing assets upgraded and replaced with more modern and resilient equipment," Powerco Chief Executive Nigel Barbour said.

The investment programme spans a five-year period from 1 April 2018 and affects networks supplying Coromandel, Eastern and Southern Waikato, Western Bay of Plenty, Taranaki, Whanganui, Manawatu, Tararua and Wairarapa.

Powerco plans to spend about $100 million throughout Whanganui, Rangitikei and parts of the Ruapehu regions - about $20 million on regional growth and security projects and a further $80 million on asset renewal, including the replacement of 250km of overhead lines and 6,300 poles.

"Our networks provide a critical link to energy supply for these regions."

There had been modest growth in electricity demand throughout the Whanganui area in recent years and Powerco expected that trend to hold for the short to medium term, he said.

As well as Commerce Commission approval Powerco will seek feedback from its customers. Mr Barbour said details would be published on its website www.yourenergyfuture.co.nz.