David and Goliath in power struggle

Friday 6th July 2001

By Jock Anderson

National grid owner and operator Transpower is to appeal a charging dispute it lost to tiny South Island hydro generator Cobb Power.

Transpower wants to recover about $1.3 million it charged - and Cobb Power refused to pay - for conveying South Island power to the North Island by a high voltage direct current link known as the HVDC.

The claim followed TransAlta New Zealand's $84 million purchase of Cobb Power from SOE Meridian Energy in June 1999.

Entering judgment for Cobb Power Justice Tony Randerson found Transpower could not have reasonably believed Cobb Power accepted what was known as "posted terms" for payment when it connected to the national grid.

Justice Randerson said he was not satisfied that Transpower had any "implied statutory power to fix and recover charges so as to limit its customers' freedom to contract or to negotiate price or other terms."

A Transpower spokesman said notice of appeal had been filed. Cobb power station is excluded from the sale of South Island On Energy.

Comments from our readers

No comments yet