John Carnegie: Energy Resources Aotearoa CEO on the investment into the Cook Strait electricity cable

A $1.4 billion upgrade could be on the way for Transpower's Cook Strait electricity cable.  

The 610 kilometre link is a transmission system connecting the North and South islands, installed in 1991. 

The existing cables are likely to reach their end of life in the late 2030s.  

Energy Resources Aotearoa CEO John Carnegie told Mike Hosking the Commerce Commission will need to review that. 

He says they’ll need to ensure the numbers are robust and the programme executable.  

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Episode Transcript

Speaker 1 (00:00):
Transpower wanting to upgrade the cook straight power cable current
one's done to a degree sometime next decade. The cost
is about one point four billion. Well that's what they
say today. John Carney, of course, is the boss of
Energy Resources. Aren't here, Rare back with us on the program, John,
very good morning to you.

Speaker 2 (00:14):
Good morning mine.

Speaker 1 (00:14):
So they put some consultation out. Is there anything actually
to consult on if something needs replacing? It needs replacing,
doesn't it.

Speaker 2 (00:21):
Well yeah, I mean it's a good proposal. Obviously the
Commerce Commission will need to scrutinize it to ensure that
the numbers are robust and the program executable. So we'll
see where that gets to.

Speaker 1 (00:38):
Does it. Is there industry wide agreement that we're up
I mean, this thing started in sixty five, was replaced
in nineteen ninety one. It looks old.

Speaker 2 (00:47):
Yeah. Yeah, Look, it's at the end of it's nearing.
It's the end of its operational life. And this is
Transfer doing what it does best, which is a bit
of four planning and advising the market. This thing's coming
at us and more. Need scrutiny by everybody, so by users,
by the generators, by en consumers, and we'll see where

(01:08):
it get it.

Speaker 1 (01:09):
This is part of and this is the most interesting
thing for me is I can't remember who it was,
but they got permission transpower to get more money off
us by way of power bills to do this sort
of thing. How I don't know what the word is.
Risky is what they do when it comes to charging
us more for power to do what they would argue
is super important for infrastructure.

Speaker 2 (01:31):
Oh well, look, that's the role of the Commerce Commission
primarily to regulate transpowers, transactions and spending because of course
Transparer is a monopoly that doesn't face competition, so you know,
the Commerce Commission will closely analyze this proposal for approval
and look, given that the replacement seems like the sensible

(01:51):
thing to do, will actually focus on whether the overall
benefits actually justify the proposing to go from three to
four cables, and that's where the focus will be.

Speaker 1 (02:01):
Good stuff. John, Always enjoy having you on the program,
John Carnegie, Energy Resources rtrare box. For more from the
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