Energy is the backbone of growth and prosperity, and Waipā needs to be ready

By Damien Whiffen, Chief Executive, Waipā Networks

Electricity is something most of us rarely think about until it’s not there.

We flick a light switch, put the jug on, charge a phone, milk the cows, open the business, heat the home, or keep production moving. It works quietly in the background, enabling almost every part of modern life. It’s only when the power goes out, a new connection is needed, or your monthly bill arrives that the electricity system becomes visible.

But the reality is that across New Zealand, electricity is becoming one of the most important infrastructure conversations of our time.

The challenge, as I see it, is not simply change. It’s how we modernise an electricity system largely built a century ago to meet modern-day needs while keeping energy as affordable as possible.

Energy equals growth and prosperity in a region. If we want Waipā to keep attracting investment, supporting businesses, enabling housing, strengthening communities and preparing for new technology, we need an electricity network ready for the future.

The question we have to answer is how we support growth while keeping electricity as affordable as possible.

Gas availability and pricing, rising costs to run the national grid, dry-year generation risk, and the broader cost of updating and maintaining infrastructure are all contributing to higher energy costs. At the same time, households and businesses are already facing increases across many parts of everyday life, from rates and water infrastructure to fuel, food and general living costs. Every dollar counts.

For local electricity distribution businesses like Waipā Networks, this creates a very real balancing act. We have to keep costs within our control as low as we reasonably can, while recognising that investment in reliable energy and local prosperity are closely linked.

Waipā is one of New Zealand’s fastest-growing, vibrant and dynamic districts. Infometrics reports the district’s population increased by 4,000 people (up 6.9 per cent) between 2020 and 2025, with growth of 32.6 per cent since 2010. Local electricity demand has risen by 25 per cent over the five years.

Since relocating to Waipā from North Canterbury, I’ve seen first-hand why people and businesses are choosing to invest their futures here. The district continues to attract new residents, skilled workers, investment and development because people recognise the opportunities this region offers. But growth doesn’t happen by accident; it needs to be enabled.

If the electricity network cannot support demand, businesses may look elsewhere, development could slow, and the region’s economic potential could be constrained. At the same time, if we invest too far ahead of demand, today’s customers may end up carrying costs before that infrastructure is fully needed, and that’s not fair.

When we talk about affordability, we have to be honest. It does not mean electricity prices will never rise. It means being disciplined about what we can control. It means investing purposefully. It means ensuring projects are needed, well-timed and fairly funded. It means collaborating within our industry to deliver better outcomes for customers.

One example is our recent agreement with WEL Networks to access an Advanced Distribution Management System. This enables us to modernise how we manage the network, improve customer visibility and support better decision-making, without building an equivalent digital architecture in-house from scratch. The approach will save Waipā customers millions in investment they’d otherwise pay. That’s the kind of practical collaboration that will become increasingly important across our sector.

There has been national discussion about scale, efficiency and the future shape of electricity distribution businesses. My view is collaboration matters more than forced structural change. We can work with like-minded electricity distribution businesses, share capability, reduce duplication and achieve many of the benefits of scale while keeping the strongest part of our model intact: local ownership.

Waipā Networks is wholly owned by Waipā Networks Trust on behalf of local electricity customers. I am passionate about the trust ownership model because it creates an ethos that the business exists for its customers. It shapes the way we think, influences investment decisions and helps keep the focus where it belongs: on affordability, service and long-term community benefit.

More households and businesses are looking at electric vehicles, solar, batteries, electric heating and alternatives to gas. Customer expectations are changing too. The electricity system we started building more than 100 years ago has served communities well, but what served us for the past century will not, on its own, see us through the next.

That is why standing still is not an option.

Photo: Damien Whiffen, Chief Executive Officer – Waipā Networks