Our recommendations
Transpower New Zealand Limited: Managing risks to transmission assets.
We recommend that:
- the board of Transpower New Zealand Limited actively monitor Transpower's progress against Transmission Tomorrow and the prioritised work programme; and
- Transpower New Zealand Limited complete its programme for improving how it manages assets and risk; in particular, Transpower must implement:
- an integrated system for managing assets that provides one consistent source of information about assets so that it can make good decisions about how it manages its assets;
- a comprehensive, quantitative, risk-based approach to managing assets that allows for risk to be traded off against the costs of mitigating the risk – essential for prioritising investments; and
- long-term targets for what Transpower considers to be the appropriate level of risk at a network level, and the associated network performance and quality measures.