Vector Chief Executive Simon Mackenzie says that the agreement will provide Transpower with access to some of Vector’s electricity network assets to allow the installation of a high voltage cable circuit between Transpower’s Penrose and Albany substations.

 

“Auckland’s security of supply is a critical issue which we believe requires a coordinated industry approach to manage. We are pleased that our assets can be used to strengthen electricity reliability for residential and business customers.”

 

The agreement provides Transpower with long term access to Vector’s Penrose to Hobson Street tunnel, its Hobson Street and Wairau Road substations, and its North Shore Transmission Corridor from Constellation Drive to Albany.

 

"In exchange for the rights granted under the agreement Transpower will pay Vector approximately $53 million. This will be paid in two instalments in approximately June 2011 and June 2012.” The agreement is expected to become unconditional in May 2011.

 

Transpower Chief Executive Patrick Strange says the agreement is a good outcome for consumers in Auckland and Northland.

 

“This cable is a vital component of our North Auckland and Northland project to reinforce the electricity supply to customers north of the Auckland isthmus.”

 

ENDS