Businesses still pushing Transpower for compensation after Northland power cut

Northland businesses are still feeling the impacts of last month’s power cut and are still pushing for compensation from Transpower.

The black-out on June 20 was caused by a 220kV pylon toppling over at Glorit, north Auckland, after contractors removed too many nuts from the base of the pylon during routine maintenance.

Power remained patchy in Northland for several days until the pylon could be replaced by a temporary tower.

The cost to businesses has been estimated at $60 million, but the full damage to the region’s reputation is still being worked out, said Darryn Fisher, chief executive of NorthChamber.

“The pain that this has caused is still ongoing and is not completely known. Every time we talk to someone, we hear further what the event caused.”

Fisher gave the example of restaurants which lost large bookings for weddings in the days after the power cut because the parties needed certainty the power would be on.

“The communications coming out of Transpower in the days after the power cut wasn’t really clear enough to restore confidence in people,” he said.

“Events like this keep sending the message that Northland is an unreliable place and that erodes confidence.”

Fisher continues to talk with Transpower, both about compensation and about helping to restore confidence in the region.

NorthChamber had sought legal advice about the next steps, and relayed this to members in an online meeting on Thursday night, he said.

The organisation represents 100,000 Northland employees in its new joint venture Business Tai Tokerau.

Detective Sergeant Dave Whitecliff-Davies controls traffic at key Whangārei intersection Walton St and Cameron St on June 20, during the region-wide power cut. Northland businesses now want Transpower to give compensation a green light. Photo / Mike Cunningham

NorthChamber president Tim Robinson previously said if Transpower did not plan to negotiate compensation, businesses would have to consider a class action lawsuit.

Energy Minister Simeon Brown has ordered the Electricity Authority to review the power cut, saying it was unacceptable and “should not happen”.

The authority has been given three months to investigate what happened and determine how it can be prevented from happening again

Fisher is also looking forward to meeting with Act leader David Seymour next week to discuss how to restore business confidence in Northland.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.