Network Tasman Ltd owns and operates the electricity distribution network in the northwest of the South Island covering an area of 10,800km² including these lines over the Waimea Inlet.
Electricity lines company Network Tasman Ltd has reported an operating surplus after tax of $12.4 million for the year to March 31, up from $11.8m in 2020-21.
Growth continued for the company across its 10,800km² distribution area at the top of the South Island with the addition of 643 consumer connections, taking the total to 42,378.
In the 2022 Annual Report, the directors and chief executive say the growth in the region “has brought forward a number of projects to ensure the security of supply”.
“Accordingly, we are under way with upgrades to both the Motueka and Motupipi substations over the next two years.”
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Board chairman John McCliskie said Network Tasman expected a lift in demand across the region over the next 10 years “as initiatives to decarbonise the economy begin to impact energy use”.
The annual report points to the likelihood of “significantly increased loads” from the electrification of transport and industrial heat processes.
“Although the speed at which this occurs remains uncertain.”
Network Tasman had modeled the potential load from electric vehicles under a range of uptake scenarios.
“We are currently reviewing our network design standards to ensure that networks being constructed in the future will provide sufficient capacity to meet expected loads under a range of scenarios.”
The company was budgeting $170m in capital spending over the next decade, reflecting the ongoing regional growth and inflationary pressures.
“Network Tasman is fortunate to be in a robust financial position to meet these challenges,” McCliskie said.
The financial statements for the company and group contained in the annual report show its position is sound.
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Total assets were listed at $281m at the end of March 2022, up from $267m the same time a year earlier.
Network Tasman paid a total of $13.3m in line discounts to consumers in the 2021-22 year. It also spent $13.1m on capital expenditure.
A fully imputed dividend of $1.8m was paid by Network Tasman to its shareholder, Network Tasman Trust. The trust owns Network Tasman on behalf of consumers.