Vector facing $400m suit over thermal deal

A Taupo businessman has filed a $400 million claim against Vector Networks, alleging the Auckland-based lines company breached a joint-venture agreement for a geothermal power station.

In papers filed at the High Court in Auckland before Christmas and released yesterday, Alistair McLachlan said the actions of Vector (then Mercury Energy) resulted in the loss of his business reputation and credibility. He said he and his wife, Ava McLachlan, suffered distress and humiliation as a result of the failed deal.

The couple have spent five years, millions of dollars and employed 34 consultants - including eight lawyers - to lodge their claim. "This is a matter of justice. They've cost me millions of dollars," the 63-year-old said.

A Vector spokeswoman said the company was not prepared to comment on Mr McLachlan's court action at this time.

Last week, McLachlan's Geotherm Group was granted consents to build a separate $280 million geothermal station.

The station will be built 4km west of Taupo, generating power using 70,000 tonnes of geothermal fluid per day.

- NZPA