About 12,000 consumers in Network Waitaki's distribution area from Shag Point to the Waitaki River and inland to Ohau, including the Hakataramea Valley, own the company and its $80 million in assets through the Waitaki Power Trust, which holds all 14 million shares. Last week, the company group, made up of Network Waitaki and Network Waitaki Contracting Ltd, released its 2011-12 annual report for the year ending March 31.
Chairwoman of directors Clare Kearney said Network Waitaki had a positive year, despite concerns with the international economy and its revenues being affected by local climatic conditions.
The group had operating revenue of $16.322 million, slightly less than the $16.383 million in the 2010-11 financial year.
It paid out a discount to consumers of $1.873 million, compared with $2.267 million in the previous financial year.
After deducting the discount, operating expenses, other costs and tax totalling $12.85 million, the group finished with a net profit of $1.598 million.
Shareholders' equity showed an increase of almost $1.6 million, rising to $67.752 million.
One of the issues the company continues to address is increasing demands being placed by electricity consumption in North Otago on Trans-power's transmission system into the area. The lower Waitaki Valley and the North Otago hinterland had experienced dramatic changes over recent years through the development of large irrigation systems and farm conversions to dairying, which had increased electricity consumption.
That had reached the point where, at times of peak demand, transmission supply into North Otago was likely to become constrained.
Network Waitaki had been working with Transpower for some years on a solution that was affordable for North Otago electricity consumers and met the expected growth for the foreseeable future.
The announcement by Holcim (New Zealand) Ltd to defer a decision on its cement plant near Weston had resulted in the preferred transmission solution for the lower Waitaki Valley being put on hold.
Mrs Kearney said identifying a long-term transmission solution for the area remained a focus for the current financial year.
During the 2011-12 financial year the company had invested $3.5 million in its network to meet the expected growth in demand, replace ageing assets, improve network security and connect new customers.
