Our recommendations

Transpower New Zealand Limited: Managing risks to transmission assets.

We recommend that:

  1. the board of Transpower New Zealand Limited actively monitor Transpower's progress against Transmission Tomorrow and the prioritised work programme; and
  2. 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.
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