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Northland MP: Transpower ‘failed its moral responsibility’ over compensation

Broadcast United News Desk
Northland MP: Transpower ‘failed its moral responsibility’ over compensation

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Grant McCallum

Northland MP Grant McCallum said the pole’s collapse was the result of “incompetence and negligence”.
photo: RNZ/Samuel Rillstone

The Northland MP said he was “shocked” to hear Transpower had pulled out of discussions about compensating businesses affected by last month’s massive power outage.

this Tower Collapse On June 20, an Omexom contractor removed too many nuts from the bolts connecting the tower to the baseplate during routine maintenance.

Transpower has Defend its position The company said it had held good-faith negotiations with local businesses and explored possible compensation options.

Transpower executive general manager strategic regulation and governance David Knight said businesses that believed they had suffered losses as a result of the blackouts A claim should be filed With their insurance company.

But Northland National Party MP Grant McCallum said it would be a “failure of moral responsibility” if Transpower allowed people to do that.

Transpower said a collapsed power pylon was the cause of the blackout.

Transpower said a collapsed power pylon was the cause of the blackout.
photo: Supplier/Kawakawa Electrical Ltd

“Reports that Transpower has pulled out of discussions about compensation for Northlanders affected by the blackouts are concerning,” McCallum said.

“This was not an act of God, this was incompetence and negligence. Transpower was entrusted with maintaining our grid and they failed in their duty through unforced errors.”

McCallum said it was Transpower’s moral obligation to develop a compensation package.

“It would be outrageous if Transpower were now abandoning those who had let them down.”

Previously, Transpower’s Knight said in a statement that retailers would be compensated through electricity retailers “if appropriate evidence is available”.

“The situation is more complicated for businesses as they are generally not covered by the Consumer Guarantees Act.”

He said discussions between Transpower and the Northland Chamber of Commerce had made it clear that “the only viable avenue for businesses that believe they have suffered losses as a result of the power outages is to make a claim through their insurance company”.

He said the insurers could then approach Transpower on their behalf.

He said it was impractical for Transpower to guarantee power because if it was forced to pay every time the power was cut “it would significantly increase the cost of providing those services and those higher costs would ultimately be passed on to consumers”.

Northland Chamber of Commerce chief executive Darryn Fisher said Transpower’s position was “completely opposite” to its previous stance and was making it more expensive and time-consuming for local businesses.

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