Power network pays discounts, saves up for upgrade

Clare Kearney.
Clare Kearney.
North Otago power lines company Network Waitaki had a better year than it expected, even after paying a substantial discount to customers and putting money away for future major capital development.

The group, owned by the Waitaki Power Trust on behalf of consumers, has reported for the 2013-14 financial year a net profit of about $3.89 million before tax and after the $1.676 million discount, compared with $3.34 million the previous year.

That was achieved with group operating revenue after the discount of $20.149 million ($17.280 million in 2012-13) and $17.867 million in expenses, costs and depreciation ($13.936 million).

The company remains in a strong financial position, being able to put a further $2.7 million aside to lift retained earnings to almost $57 million.

In recent years, Network Waitaki has been building up retained earnings to finance a major upgrade in its network supply from next year, ensuring security of supply to consumers is retained.

Several options have been investigated and a decision is expected this financial year.

That provision was also reflected in the consumer's discount this year, about $400,000 less than in the previous year.

The company also has no external debt. An in-house $1.1 million loan from the its owner, the power trust, provides operating revenue for the trust.

Chairwoman Clare Kearney said the financial performance of the group, made up of Network Waitaki and subsidiary Network Waitaki Contracting, was higher than expected because of the positive contribution made by its contracting subsidiary and an increase in capital contributions, paid by new consumers or those increasing supply towards the present and future capital cost of the network.

Capital contributions were about $1.46 million, compared with $1.13 million in the 2012-13 financial year.

That came from a 9.5% increase in demand for electricity (an extra 4759kW).

Irrigation made up 69% of the growth, dairy sheds 17% and commercial-industrial 8%. Residential grew by 6%.

To meet the demand for new irrigation in the Hakataramea Valley and redistribute load between Kurow and Duntroon, the company was looking at upgrading the supply from Transpower's grid at the Waitaki dam.

The board also paid almost $78,000 in sponsorships, along with a university scholarship programme.

The Waitaki Power Trust will hold its public annual meeting in the Kingsgate Brydone Hotel tomorrow, at 2.30pm.

david.bruce@odt.co.nz

 


Network Waitaki Ltd

• Owned by consumers through a trust.

• Covers Shag Point to Waitaki River, Hakataramea Valley and inland to Ohau.

• 12,353 connected customers.

• 52 employees.

• 239GWh electricity transmitted a year.

• 1748km lines and cables.

• $3.89 million net profit 2013-14.


 

Add a Comment