Investments

Electricity Invercargill has a number of investments in the electricity network sector. Following is a summary of these investments.

Electricity Invercargill entered into a 50/50 partnership with The Power Company to form PowerNet Limited in 1994. Reduced costs through economies of scale and the ability to maximize benefits for consumers were the main drivers for the joint venture.

Electricity Invercargill and The Power Company retain ownership of their respective network assets and PowerNet manages these assets on their behalf. This management is implemented through agreed capital and maintenance works programmes which constitute the major part of the Business Plans. Each company has its own Business Plan which is prepared by PowerNet and approved by the respective network owners.

Electricity Invercargill and The Power Company also formed another joint venture company, Electricity Southland, to take advantage of investment and development opportunities. Electricity Southland owns an embedded network in Frankton which is in the Queenstown Lakes area. This network is also managed by PowerNet.

Electricity Invercargill and The Power Company expanded their successful partnership in 2006 with the purchase of the electricity network contracting company Power Services Limited which is based in Southland. Electricity Invercargill holds a 49% shareholding while The Power Company owns 51% of the Company.

The electricity network assets of Otago Power Limited were purchased in 2002 by a partnership comprising Electricity Invercargill, The Power Company and Marlborough Lines. The new entity, OtagoNet Joint Venture, was formed, Governing Committee was established and PowerNet contracted to manage the assets on behalf of the owners.

At the same time the three joint venture partners purchased the electrical contracting company Otago Power Services Limited. Electricity Invercargill has a 24.5% shareholding in both OtagoNet Joint Venture and Otago Power Services.