New Remarkables Park Substation

22 May 2007

New Remarkables Park Substation To Avert Future Power Crisis

Plans to introduce a new power provider and build a new electricity substation at Remarkables Park before the end of the year will help Queenstown avoid predicted electricity crises, and lead to more competitive line charges.

The initiative by Remarkables Park directors John and Alastair Porter has already led to a price war between Dunedin power line services provider Delta and potential newcomer to the market, Southland-based joint venture company PowerNet.

Reports this week pointed to a rapid rise in Queenstown visitor accommodation that will put serious pressure on all electricity lines, some of which are already operating at full capacity.

Forecasting this future growth, Remarkables Park directors approached PowerNet more than four years ago in the search for a competitive alternative power line services provider.

PowerNet, on behalf of its shareholders, is investing up to $5 million in the Frankton area before the end of the year on supply cables, a new substation and reticulation, according to PowerNet Chief Executive Martin Walton.

The Southland electricity network provider will run new underground 33,000 volt cables from Transpower’s Frankton substation along Grant Road and under the airport runway to the new substation, which will be located at the northern end of Remarkables Park.

PowerNet’s new 22,000 Volt cables will radiate out from this new substation to supply customers along State Highway 6 to both Glenda Drive and to the roundabout at the BP station and back into and around Remarkables Park.

Remarkables Park director Alastair Porter said the new power company could only be good for the district. Given the new network would all be underground, it would be environmentally sensitive and provide a more secure supply as it would not be susceptible to overhead line breaks caused by winter snow loading on lines or vehicle collisions with power poles.

“A new power company will reduce Queenstown’s overall power costs by introducing competition, as well as lessen pressure on current lines by laying a solid power network for the future,” he said.

“The initiative feeds into our long term approach to undertake sustainable developments that will benefit Queenstown and are integrated and complementary to its development.”

Mr Walton said Frankton was a prime place to supply electricity with a good scope for future growth.

“This is a fantastic opportunity for PowerNet to break into the expanding Queenstown market and we are looking at the potential of extending our new network along the Frankton Road to Queenstown,” he said.

Electricity in the Wakatipu basin is currently supplied by Aurora Energy, formerly called Dunedin Electricity, and managed by Delta Utility Services.

In the face of competition, Delta is now competing very strongly to maintain a hold of its supply to the Frankton area by offering lower charges. Mr Walton said PowerNet welcomed the competition and had undertaken to match or better the Delta charges.

PowerNet is currently working with local Queenstown company Peak Power Distribution to operate field services such as maintenance and cable laying in the Frankton area.

PowerNet manages the electricity networks of The Power Company Limited, Electricity Invercargill Limited, OtagoNet Joint Venture, Stewart Island Electricity Supply Authority and Electricity Southland Limited.

ENDS

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