Horizon Energy wishes to advise consumers that a recent failure of one of two power transformers at its Galatea substation has reduced the security of supply to the Galatea region.

Although the probability of a failure on the remaining transformer is low, customers can expect an extended outage of supply to the region in the event of a fault. Horizon Energy has taken steps to reduce the impact of any extended outage by sourcing and locating another transformer from Unison Networks, our neighbouring power company at Galatea.

Horizon Energy Distribution Limited’s (“Horizon Energy”) wholly owned subsidiary Aquaheat New Zealand Limited (“Aquaheat”) could, on currently available information, suffer a maximum pre-tax loss of $4 million ($2.9 million post tax) as a result of Mainzeal Property and Construction being placed into receivership. This loss will reduce the forecast after tax profitability of the Horizon Group to around $500,000 for the 2013 financial year, down from the recently announced $3.4 million.

Horizon Energy Distribution Limited’s wholly owned subsidiary, Aquaheat New Zealand Limited is likely to incur a significant adverse financial impact arising from the announcement yesterday of the appointment of Receivers to Mainzeal Property and Construction Limited.

The Commerce Commission has today announced a 2.9% reduction in allowable revenue for Horizon Energy Distribution Limited effective from 1 April 2013.

Horizon Energy Chairman Mr Rob Tait said “Although this price reset represents a significant improvement from the Commission’s draft decision in July 2011 of a negative 9.8% price reduction, the Company is disappointed that the Commission continues to use the 2010-2020 Asset Management Plan which does not reflect the Company’s increased investment plans”.