North Island power line upgrade costs 'could be halved'

By RICHARD BRADDELL

National electricity grid operator Transpower says the cost of upgrading central North Island lines could halve if the Electricity Act were changed to improve rights of access to farm land.

Chief executive Bob Thomson said the cost of replacing wiring in four areas collectively known as the Taupo constraint was about $40 million.

But because the SOE would have to negotiate fresh easements and rights of access to transmission lines, that could cost a further $60 million to $80 million.

Transpower's reluctance to upgrade the central North Island lines has been a source of irritation to Meridian and other generators further south who would like increased capacity so they can sell electricity into Auckland when prices are high.

Meridian is also proposing a six-dam generation project on the Waitaki which could be in production in six years.

But Mr Thomson said that any new generation project should have the price of upgrading the lines built into it, and the generator should meet that cost.

However, the cost of easements could be very high, and there was no guarantee they could be obtained for the full length of the lines involved.

Transpower's lines date back to more authoritarian times when public works could be imposed on property owners with little compensation.

Mr Thomson indicated that he had no wish to return to those times, but he said a change to the Electricity Act was vital so Transpower could make non-injurious upgrades to lines without having to pay for access.

That has been opposed by Federated Farmers and, at present, Transpower has rights of access for maintenance purposes but if it wants to rewire a line or install fatter conductors, it must negotiate a fresh easement, he said.

Transpower expects small scale local projects to fill gaps in supply at peak times when long-distance transmission facilities are at peak load.

Gold plating the network so that it could meet all potential loads would cost about $600 million.