MRP's Metrix cans Trustpower contract before it begins
The company decided not to proceed with the contract after reviewing the systems development to date and continuing requirements.
MightyRiverPower's [NZX: MRP] Metrix metering business has walked away from a deal with Infratil-controlled Trustpower that would have supplied the power company's 242,000 electricity customers with smart meters.
The Auckland-based company decided not to proceed with the contract after reviewing the systems development to date and continuing requirements, it said in a statement. The contract had been expected to start this year, before scaling up in 2016. MRP will divert the three-year $100 million capital expenditure programme into its capital management, it said.
"While it is very disappointing to end the agreement before commencing services, it has recently become clear that continuing could potentially impact Metrix's core business in the short-term, and the contract was not sustainable over the long-term," Metrix chief executive Matthew Olde said. "The evolving and unforeseen complexities involved in the systems development and integration and associated delays have been key in reaching this decision."
The government-controlled power company has been chasing growth through its Metrix service, which provides electricity retailers and companies with 'smart' meters, and is the second-largest provider in New Zealand. The smart meter business had installed 377,000 meters as at June 30.
MRP shares last traded at $2.88.
(BusinessDesk)
Paul McBeth
Fri, 03 Jul 2015
Fri, 03 Jul 2015
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MRP's Metrix cans Trustpower contract before it begins
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