After a long and complex history of electricity company ownership in Nelson Tasman, things are about to change.
Network Tasman has purchased Marlborough Lines’ 50 per cent share in Nelson Electricity (NEL), meaning we will now have only one electricity lines company in the region.
The $26.7 million deal takes effect on 31 March.
Marlborough Lines and Network Tasman have jointly owned NEL for the past 29 years, since 1996.
“This acquisition represents a sensible consolidation of the electricity networks for the Nelson and Tasman region,” said Sarah Smith, chair of Network Tasman.
Nelson Electricity will continue to operate as a standalone company, with services provided by Network Tasman.
There is a complex history behind this sale that goes back to when power boards owned the power lines in rural areas and councils owned them in cities.
Nelson City Council started its electricity company in 1923 with the Wakefield Quay coal-fired station. Areas such as Tāhunanui, Stoke, Atawhai, and Wakapuaka were not then part of the city.
The lines in these outer areas were developed by the Tasman Electric Power Board, which evolved into Network Tasman.
This history has resulted in Network Tasman owning the network to 44,000 consumers and Nelson Electricity covering just 9,400 central-city consumers in a concentrated area of 24 square kilometres.
In 1991, the council leased the NEL network to Wellington Electricity, and then in 1996, sold it 50/50 to Marlborough Lines and Network Tasman.
Sarah says the purchase has been funded through existing debt facilities and will not impact prices charged to either NEL or Network Tasman customers.
Chair of the Network Tasman Trust, Gwenny Davis, says the trust welcomes the decision.
“I think it’s great that we are bringing Nelson Electricity under the Network Tasman umbrella.”
Although Network Tasman provides significant discounts to its consumers worth about $200 a year, the change of ownership of NEL does not mean these discounts will be available to their customers.
The immediate priority will be paying down the debt raised by Network Tasman to acquire Marlborough Lines’ shares.
