Possible Powerco sale won't affect consumers

The touted sale of the Powerco network in Wairarapa should not affect power consumers in the region.
Powerco, owned by Babcock & Brown Infrastructure in Australia, is the second largest lines company in New Zealand with 305,000 customers on its electricity networks in Wairarapa as well as Coromandel, Western Bay of Plenty, Hauraki Plains, parts of Waikato, Taranaki, Wanganui, Rangitikei and Manawatu.
Babcock & Brown also own a gas network in the lower North Island serving 100,000 customers and the company yesterday announced commencement of a formal price discovery process to find investment partners for up to half of its core assets Powerco and Westnet Rail.
Genesis Energy public affairs manager Richard Gordon said lines companies in New Zealand are "natural monopolies" that are consequent subjects of strict regulation regarding pricing and returns.
"Charging is heavily regulated and for us is not a real concern so long as our power is getting to our customers."
BBI started a capital management review in mid-June as a response from its parent company investment bank Babcock & Brown to a rapid share price drop and questions over its debt-loaded business model.