The Commerce Commission has released its draft decision
allowing Transpower to invest $36 million to replace ageing infrastructure and cater for increasing electricity demand
in South Auckland.
Transpower, which owns and operates the national electricity grid, applied to the Commission in May 2020 to spend $36
million to invest in its Bombay-Otahuhu regional network by June 2023.
“Our draft decision is that this investment is needed to maintain a secure and reliable electricity supply to the
Bombay-Otahuhu region,” Commission General Manager of Regulation Nick Russ said.
“The decision would allow Transpower to purchase two new transformers for the grid, as well as doing preparatory work to
replace conductors from Otahuhu to Wiri.”
Transpower is currently developing its understanding of the likely costs of the conductor replacement. It intends to
complete and recover the cost of the replacement by seeking an amendment to the Commission’s decision.
The Commission is consulting on its draft decision and will consider submissions before making its final decision.
Submissions on the draft decision
are due by 17 December 2020 and cross submissions are due by 22 January 2021. The Commission expects to make its final
decision by 19 March 2021.