Eastland region’s electricity supply now in local hands

EMBARGOED UNTIL 12am/midnight, 1 April 2015

Eastland region’s entire electricity supply now in local hands

Today’s transfer of Transpower’s Gisborne and Wairoa 110kV assets to Eastland Network is a significant step towards Eastland Group’s growth aspirations, says the company’s chief executive Matt Todd.

“Eastland Network now owns the region’s high voltage electricity transmission network – the steel towers and poles that connect the region to the national grid.”

Part of the Eastland Group, Eastland Network is the electricity distribution company for the Gisborne, East Coast and Wairoa regions and owns and operates the poles, wires and underground cabling used by energy retailers who supply customers with electricity.

Mr Todd said the transfer of the Transpower assets added around $14 million to the company’s existing asset base, and boosted Eastland Group’s commitment to seeking out additional commercial opportunities.

“Our strategic plan outlines a two-fold commitment. We want to provide excellent returns to our shareholder, Eastland Community Trust, and also to develop and operate exceptional and fit-for-purpose infrastructure.”

Eastland Group is currently undertaking a $12 million redevelopment of the upper log yard at Eastland Port to meet projected demand from forestry customers, as well as a $2.5 million reseal of the runway at Gisborne Airport.

Transpower’s corporate communications manager, Rebecca Wilson, said today’s transfer of the 110kV network was part of a programme to rationalise the ownership of some of the company’s lower voltage connection assets.

“Transferring the region’s 110kv assets to Eastland Network enables greater local management of electricity assets and allows us to focus our resources on the interconnected national grid. Ultimately, it means a better service for consumers,” she said.

Eastland Group’s general manager energy, Brent Stewart, said the transfer was an exciting opportunity for Eastland Network. “The region’s entire electricity lines network are now locally owned, meaning we can plan for maintenance and upgrades with the future of our region top-of-mind.”

“The change will provide additional regulated revenue via the Commerce Commission’s pricing processes, and it also provides the opportunity for us to continue to resource Eastland Network for both operational and engineering work and to meet the ongoing challenges of regulation.”

Mr Stewart said it would be “business as usual” for those landowners with towers or poles located on their properties.

“Apart from an update in signage on towers and poles, not much will change. Current practices regarding inspection, access and maintenance will carry on. Landowners should contact Eastland Network with any queries or issues, and in emergencies everyone should continue to contact Eastland Faults on 0800 206 207.”

He said Eastland Network was committed to spending around $15 million on the new 110kV assets over the next five years, and around $1.5 million a year on operations.

ENDS

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