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Southland and West Otago’s power network has been revalued, resulting in a $52 million increase from five years ago.

The Power Company Ltd posted an operating surplus of just under $20 million.

The company delivers electricity to 36,727 customers in the South.

Its network assets include 8850km of lines and 11,263 distribution transformers.

The company’s annual report, released this week, said the after-tax impact of the revaluation of $37.4 million contributed to the increase in the group’s equity to $397.8 million, up from $350.4 million last year.

In its report, the company said the group achieved a satisfactory operating surplus of $19.9 million, before discount, tax, fair value adjustments and IFRS change - slightly up from $19.4 million in 2020.

In 2020-21 it spent $35.4 million on capital and maintenance works to enhance and improve the network, but that its most significant milestones included the commissioning of its first off-the-grid remote area power supply (Raps) system, the Rowallan Microgrid (with solar power, a battery, and back-up generator) on the edge of the Fiordland National Park.

“We see the potential for similar new energy solutions in future situations where they are more efficient and economical than traditional poles and lines.”

Investments outlined in its asset management plan included asset replacements at $11.4 million-$17.5 million annually and upgrading supply to 22kV from Athol to Kingston at $7 million.

The Southland Power Trust was established in December 1997 to hold shares in the company on behalf of all customers connected to the company’s electricity network.