Learnings from consolidation

Keeping the lights on while bringing together the best of two electricity distribution businesses

The spotlight is on New Zealand’s electricity network companies to make efficiencies for the benefit of customers, and bringing electricity distribution businesses (EDBs) together through acquisition is one way to help achieve this.

With 27 EDBs in New Zealand delivering power to a little over five million people, Powerco believes the most efficient and cost-effective way for local communities to receive reliable, resilient and affordable electricity going forward, is through economies of scale.

Firstlight Network is the lines company across the Tairāwhiti and Wairoa regions and has a long history in the region, having previously been part of trust-owned Eastland Group, before being acquired by Igneo Infrastructure Partners’ business Clarus Group in early 2023.

Having looked at the company then, when the opportunity to acquire Firstlight Network arose again during 2025, we pursued it and successfully acquired it on 31 July 2026. As was our view then, we believe there’s an opportunity to utilise the skills and resources within Powerco to further strengthen the performance of this electricity network for the local communities and their people.

So, how do you successfully integrate two electricity network companies? Lynley Dunn, Powerco’s Head of Electricity Programme and Delivery and Programme Director for the integration, and Ryan Aspden, Head of Operational Technology addressed this very question at the Electricity Engineers’ Association (EEA) 2026 Conference in September 2026.

 

Three key principles

Powerco’s approach to bringing the two businesses together has been guided by three key principles:

• Putting people first by recognising the impact on people (employees, customers and community stakeholders), placing them at the centre and planning around them with clear communication and formal change management.
• Taking the best of both businesses by assessing processes, technology and ways of working on their merits rather than assuming Powerco’s approach was better.
• Applying disciplined programme management by following project management office (PMO) principles – creating clear accountability for delivery, managing risk appropriately and practicing good governance.
  
  

Key learnings

Lynley and Ryan outlined the key learnings from the on-going integration, including the importance of putting people first and understanding your own capabilities:

• Build the right team: Ensure a mix of business savvy and programme management savvy. Match the mix to what's needed, figure out backfill, and be prepared to change as business needs change.
• Phase the change: Not everything needs to change at the same time. Focus on business continuity and introduce change progressively, manage change fatigue - especially during the early stages of transition.
• Put people first: Systems and processes can be redesigned, trust cannot. Prioritise the employee experience. Support people working throughout periods of uncertainty.
• Communicate early and often: Be transparent in your communications. Make sure the people impacted hear first. Be prepared with your next message.
• Assess your own readiness: Do a health check on your own systems, processes, and technology during due diligence. Make sure your house is in order. Stabilise your core before change is introduced.
• Seek access before settlement: Connect with your new colleagues early. They are going to be your people shortly. Build trust, explain constraints, outline your plan – that way, day one becomes a lot less chaotic.
• Document the journey: We've already learnt so much, and there's more to come. We're building a playbook that will help make future integrations even more successful.
• Celebrate success: It's a marathon, not a sprint. Recognise and celebrate achievements to help maintain motivation and keep momentum.

 

Synergies

The presentation also highlighted the synergies that can come from consolidating two lines companies, including financial benefits, such as reduced duplication of effort, savings on insurance, lower licensing costs and support functions, and greater buying power.

 

Case study: Utility-scale distributed generation applications

Since purchasing Firstlight Network in July the teams have been working together to integrate systems and operations. We reached a milestone in that journey in October with the changeover of the first customer-facing process: utility-scale distributed generation (USDG) connections (1MW and above).

All new applications will now go through the Powerco USDG connections process, and for customers with existing applications, the team’s focus is on progressing through application approvals and providing clarity on subsequent staging and requirements.

So while the newly-combined team are still working through some of the internal processes, ultimately Tairāwhiti and Wairoa customers will benefit from Powerco’s, delivery and operational experience, scale and systems capabilities moving forward – from pipeline staging, through to commissioning and network operation.

(It should be noted that the Tairāwhiti and Wairoa region is not currently included on its USDG hosting capacity map, but will be added in 2027).

 

Three takeaways

To close out, Lynley and Ryan emphasised that the integration of the two companies has only just begun and shared with the audience three key takeaways from their experience so far.

1. Success starts with preparation and the right people: Assess your own readiness, build a business-savvy team supported by a disciplined PMO, figure out backfill where needed, and be prepared to adapt as circumstances change. Get comfortable working 'in the grey' and manage intellectual perfectionism.
2. Put people at the centre of change: Technology, systems, and processes can be redesigned, but trust cannot. Engage teams early, provide plenty of support, and manage uncertainty to create commitment rather than resistance.
3. Treat the integration as a journey, not an event: Successful change is phased, deliberate, and continuously improved. Prioritise business continuity, introduce change progressively, and celebrate milestones to maintain momentum.