Claim other networks uneasy

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Accusations Aurora dangerously mismanaged its network has other lines companies scared of a wider Commerce Commission crackdown.

An anonymous source said fears of such a crackdown resulted in a South Island-based network contacting Marlborough Lines to express concern the latter was speaking out in the media.

The Otago Daily Times understands it was Christchurch City Council-owned network Orion which made that contact.

This comes as the Commerce Commission said yesterday it ``may'' conduct a wider investigation of the state of New Zealand electricity infrastructure.

The anonymous source said the network, which expressed concern to Marlborough Lines, was worried chairman David Dew's criticism of OtagoNet could prompt the Commerce Commission to look into how infrastructure was managed at other networks.

``It's pretty clear they are concerned.''

Networks feared former Delta manager Richard Healey coming forward with allegations against Aurora could prompt increased scrutiny of investor-owned networks.

The source said investor-owned networks, unlike consumer-owned networks, had an incentive to put profits above network maintenance.

A Commerce Commission spokesman said it was yet to decide whether a wider investigation was needed.

``At this stage we have not established that a wider investigation of the state of New Zealand electricity infrastructure is required for the purposes of carrying out our functions in monitoring compliance with the quality standards we set.

``However, we will continue to consider these issues in line with our role and may in the future conduct a review at an industry level or at a targeted electricity distribution business level.''

Electricity Networks Association chief executive Graeme Peters, who is tasked with representing all 29 New Zealand lines companies, declined to comment on whether there was widespread concern in the industry about a Commerce Commission crackdown.

Orion did not respond to direct questions yesterday but said in a statement "the network companies regularly engage to discuss issues of the day.

"Orion’s first priority is to ensure a safe and resilient supply of power to the communities it supports. To this end, we have always prioritised the timely management of our assets."

Mr Healey said owners of networks which had not properly invested in them should be worried profits could be about to fall.

``Some will be called to task and that's going to go straight to the bottom line,'' he said.

He had heard that as a result of him raising issues about Aurora's network, some other networks were acting proactively to bring parts of their network up to scratch.

This had resulted in some infrastructure suppliers running out of parts.

vaughan.elder@odt.co.nz

 

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