Trustpower Limited announces sale of its electricity metering business

WELLINGTON: Trustpower Limited, a New Zealand electricity generation and electricity retailing company, has reached an unconditional agreement with Financial Corporation Limited (FCL) for the sale of its electricity meter assets and meter equipment provider (MEP) business, with completion occurring on Friday 15th November. The transaction price is not disclosed.

The sale includes electricity metering assets at approximately 125,000 installations nationally, (across a mix of Trustpower retailed and third-party retailed customers) as well as a number of business systems and processes. All Trustpower staff currently working in the MEP business have been offered ongoing employment with FCL and the business will continue to be based in Tauranga.

The sale continues Trustpower’s strategic evolution to a more digitally focused multi-product retailer and supports the ongoing transition of its retail customer base to smart metering.

In 2018, Trustpower signed an agreement with Australasian smart metering service provider Intellihub that initiated the rollout of AMI (smart) meters to approximately 140,000 Trustpower customers. With that programme well underway and a commitment to these new services and business model, the timing was right for Trustpower to exit the metering business.

Trustpower’s General Manager of Business Solutions & Technology, Simon Clarke says the sale is a mutually beneficial agreement.

“Trustpower has successfully operated a great metering business for the last 20 plus years but our view is that the ongoing ownership of that business will no longer provide us with the competitive advantage it once did. The sale allows Trustpower to continue to focus on its core strategic retail ambitions, whilst realising good value for the assets and a positive outcome for staff. We are also pleased that FCL are continuing business operations here in our home town of Tauranga”.

Both parties will work together over the coming months to ensure a seamless transition of the business.

Tagged , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.