Local power company prepared to pay for new transmission line

1.00pm

Network Tasman is prepared to put up millions of dollars to fund a new power circuit to serve Nelson and Marlborough, putting an end to the region's power problems.

But it has to convince national grid operator TransPower to let it fund the circuit.

Capacity on the national grid is under severe strain, and TransPower has warned of likely power cuts this winter if demand reaches 1030mw, the total capacity of its lines. Consumption has already reached 950mw several times, peaking at about 960mw on May 27.

Network Tasman owns and operates the electricity distribution network in the wider Nelson and Tasman areas, excluding Nelson Electricity's supply area in Nelson city.

Network Tasman chairman Ian Kearney said today he could not guess the cost of the circuit, which would run between Islington near Christchurch and Kikiwa near St Arnaud, between Nelson and Blenheim, but it would be in millions of dollars.

"It's been known about for six or seven years, and we've been getting increasingly loud in our request for action in the last three years," Mr Kearney said. "In the past, TransPower has been reluctant to have someone else owning assets on their system."

Mr Kearney said the circuit would probably double the existing capacity between Islington and Kikiwa and if an extra line was also put in between Benmore and Christchurch, it would be a long-term solution to the upper South Island's power problems.

The circuit would take 12 to 18 months to build and Network Tasman hoped to reach an agreement with TransPower about it by the end of this year.

TransPower staff were not available for comment this morning.

Meanwhile, the electricity commissioner says he is confident the South Island can beat the threat of power blackouts.

However Roy Hemmingway said if there were any power cuts, there would only be a few hours' warning at the most.

"TransPower needs to get to work on improvements to ensure this does not happen in future years," Mr Hemmingway said today.

- NZPA