26 July 2024
Electricity lines company Network Tasman Limited today reported an operating surplus after tax of $10.0 million for the year ended 31 March 2024 (2022/23 $11.9 million).
The Chair of the company Ms Sarah Smith noted that “The company continued to grow with a further 504 new connections during the year, bringing the total number to 43,577”.
Ms Smith noted that “The company paid a total of $14.1 million in discounts to our customers and a fully imputed dividend of $1.7 million to the Network Tasman Trust. The operating surplus allows the company to continue to re-invest in the safety and reliability of our network while also having the lowest residential line charges in the country. Returns have been supported by its non-regulated investment activities, which continue to provide increasing returns to shareholders”.
Ms Smith noted that “Our focus remains on providing open access to all consumers and technologies. In the future, we expect capital investment to increase as the regional economy (both industrial and light transport) look to decarbonise their activities”.
The company continues to monitor the effects climate change may have on our network including sea-level rise and the increasing frequency and severity of major storms.
Ms Smith added “After a long period of growth in new connections, we are anticipating a year of more subdued growth, especially in the residential sector. With a very low-cost base, low-term debt, and a range of regulated and non-regulated businesses, the company remains well-placed to respond to the challenges ahead”.
Key facts:
About Network Tasman
Network Tasman’s mission is to operate low-cost, open-access networks that deliver outstanding reliability and efficiency while maintaining shareholder value.
Network Tasman owns and operates the electricity distribution network in the wider Nelson and Tasman areas, excluding Nelson Electricity’s supply area in Nelson City.
The Network Tasman electricity distribution network distributes power to approximately 43,577 consumer connections in an area of 10,800 km2 in the north-western corner of the South Island.
In addition to its principal activity, the company has interests in complementary businesses of fibre optic networks, property, 50% shareholdings in Nelson Electricity Limited and On Metering Limited and advanced metering on the Network Tasman network.
Network Tasman itself is wholly owned by the Network Tasman Trust.
