The power cut was caused when contractors removed too many nuts on a high-voltage tower at Glorit, north Auckland, causing the tower to topple over and take out Northland’s two 220kV lines.
But when NorthChamber approached Transpower about compensation for businesses, chief executive Darryn Fisher was “coldly” told the provider had no obligation to give any direct compensation or support, and businesses should make an insurance claim.
McCallum said Transpower made an offer, but he believed the payment should be about 10 times more. The executives said they would take this to Transpower’s board for a decision.
“We’ve got a way to go, on what I think they need to get to and what they’re offering.”
McCallum said the situation is unlike any previous event, as it was caused by “incompetence and negligence” by Transpower and its contractor.
Details about how the amount would be paid out to Northland residents and businesses has not been discussed yet, he said.
McCallum originally suggested Transpower discount transmission charges to Northland for a year. However, this proved too complicated, as power pricing is set by the Electricity Authority.
He said an organisation like Northland Inc might be best placed to administer any payment on behalf of Te Tai Tokerau. The regional development agency has some experience in this, as it distributed government payments to those impacted by Cyclone Gabrielle.
Transpower has been approached for comment.
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.