Southern electricity lines companies Aurora Energy and Alpine Energy are joining forces in a bid to lower costs, but are stopping short of a full merger.
The companies say the partnership will improve efficiency, strengthen community services and better prepare their networks for the future energy transition. No job losses are expected.
A statement released by the two lines companies said both were facing similar challenges as the energy system evolved.
Rather than investing separately in the same new skills, systems, capability and capacity, they were choosing to work together to combine their operations to deliver better outcomes for customers.
The boards had established a joint steering group to recommend how to integrate their operations to achieve greater efficiency, scale and standardisation.
A joint spokesperson for both companies said an integrated model also had the potential to improve resilience and emergency response across the companies’ geographical footprint.
"Both companies serve a diverse customer base. We're optimistic about how shared operations can help both companies meet these needs in the future, and at a lower cost than operating alone."
Aurora Energy is based in Dunedin and has about 96,000 customers across Dunedin, Central Otago and the Queenstown-Lakes District.
Alpine Energy is an electricity distribution company based in Timaru, boasting bout 34,000 customers throughout South Canterbury, including Timaru, Waimate and Mackenzie districts. Combined, the two companies serve more than 20% of the South Island’s electricity customers.
Aurora Energy chairman Steve Thompson said the partnership reflected a proactive leadership approach to future challenges and opportunities facing the sector.
“The energy sector is changing rapidly. Working together gives us a real opportunity to share strengths, drive efficiencies, and create the scale needed to innovate and deliver better outcomes for consumers."
Work on the sharing of resources had started and it was hoped to have recommendations by the middle of 2026.
There was no change to existing governance arrangements and a joint steering group has been established with equal representation from each company.
Aurora and Alpine would continue to exist as separate companies, own their respective assets, and be accountable for their business requirements.
Alpine Energy chairman Tony King said the collaboration was about strengthening both regions and ensuring there was the scale and capability the communities they served would need in the years ahead.
