MRP's Metrix cans Trustpower contract before it begins
MRP's Metrix cans Trustpower contract before it begins
By Paul McBeth
July 3 (BusinessDesk) -
MightyRiverPower's Metrix metering business has walked away
from a deal with Infratil-controlled Trustpower that would
have supplied the power company's 242,000 electricity
customers with smart meters.
The Auckland-based company decided not to proceed with the contract after reviewing the systems development to date and ongoing requirements, it said in a statement. The contract was expected to start this year, before scaling up in 2016. MRP will divert the three-year $100 million capital expenditure programme into its ongoing capital management, it said.
"While it is
very disappointing to end the agreement prior to commencing
services, it has recently become clear that continuing could
potentially impact Metrix’s core business in the
short-term, and the contract was not sustainable over the
long-term," Metrix chief executive Matthew Olde said. "The
evolving and unforeseen complexities involved in the systems
development and integration and associated delays have been
key in reaching this decision."
The government-controlled power company has been chasing growth through its Metrix service, which provides electricity retailers and companies with ‘smart’ meters, and is the second-largest provider in New Zealand. The smart meter business had installed 377,000 meters as at June 30.
MRP shares last traded
at
$2.88.
(BusinessDesk)