The Power Company has a number of investments in the electricity network sector. Following is a summary of these investments.
The Power Company (TPCL) entered into a 50/50 partnership with Electricity Invercargill Limited (EIL) 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.
TPCL and EIL retain the ownership of their respective network assets and PowerNet manages the 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 prepared by PowerNet and approved by the respective network owners.
TPCL and EIL also formed another joint venture company, Electricity Southland, to take advantage of investment and development opportunities. Electricity Southland owns an embedded network in Frankton and Wanaka in Central Otago. This network is also managed by PowerNet.
OtagoNet Joint Venture (OJV) is owned wholly by EIL and TPCL. OJV was formed in 2002 following the purchase of the electricity network assets from the shareholders of the consumer co-operative company Otago Power Limited.