Investments

The Power Company Ltd (TPCL) and Electricity Invercargill Ltd (EIL) have investments in the electricity network sector. Following is a summary of these investments.

In 1994, TPCL and EIL entered into a 50/50 partnership to form PowerNet Limited. 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, Lakeland Network Ltd (formerly Electricity Southland Ltd), to take advantage of investment and development opportunities. Lakeland Network owns a network in the Queenstown-Lakes and two embedded networks in Wanaka and Cromwell  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 Ltd.