Powerco has signed a five-year contract with Electrix to further shore up preparations for the increased network build contained in its CPP application.
The agreement follows the recent signing with Northpower and provides significant additional field service capacity.
The CPP application is still being scrutinised by the Commerce Commission but the Electrix contract ensures Powerco will be ready to increase network investment if CPP approval is granted.
Glenn Sharratt, Powerco Acting General Manager of Service Delivery and System Operations, said Electrix has done a number of projects for Powerco in recent years.
“This agreement extends and formalises our relationship” Mr. Sharratt said. “Like the Northpower Agreement, the terms are flexible. This means we can adjust volumes as needed depending on the Commission’s final decision.”
Powerco now has three substantial network service providers with national capability -Downer, Northpower and Electrix. Downer will remain the largest over the near term, and will continue to supply services in both the Eastern and Western networks. Electrix will provide services primarily in the West, with Northpower focused in the East.
“The new service provision agreements are needed to deliver the increased work volumes outlined in the CPP application. They complement the existing Electricity Field Services Agreements (EFSAs) with Downer.
“They establish resident competitors within our footprint that are secure in their tenure and are able to increase resources for the CPP uplift.”
Powerco’s investment plans represent a significant, sustained increase over historic levels. To help ensure the long-term sustainability of the field service capability in light of this increase, both Northpower and Electrix will introduce new, skilled labour in to our network areas.
Electrix has already begun engaging with Powerco under the new contract, and will gradually increase its capacity over the coming months.
For additional information, or if you have any questions, please feel free to get in touch with Mark Pratt, Powerco’s Electricity Contracts and Performance Manager.
(Photo: Electrix General Manager New Zealand, Robert Ferris, is flanked by Powerco's Nigel Barbour, Mark Pratt, David Owen and Glenn Sharratt at last week's signing)