Electricity Invercargill Ltd (EIL) has a number of investments in the electricity network sector.
EIL entered into a 50/50 partnership with The Power Company Ltd (TPCL) to form PowerNet Ltd in 1994. Reduced costs through economies of scale and the ability to maximize benefits for consumers were the main drivers for the joint venture.
EIL and TPCL 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.
EIL and TPCL 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.