Western Power scraps alliance

WESTERN Power has announced the termination of its Power Alliance with Sydney-based partners Downer EDI and Tenix Group, but will maintain its contract for capital works with Transfield Services.

The Power Alliance was the largest in the corporation’s history and was terminated following the deferral and reduction in scope of a number of capital projects set for completion by Downer EDI and Tenix.

Western Power said it now had surplus capacity among its own staff to complete the work undertaken by the alliance.

“A review identified surplus capacity given the significant reduction in the volume of capital works in the wake of the GFC,” Western Power said in a statement.

Line work between Perth and Geraldton, Margaret River and Busselton and Chapman and Northampton has been deferred.

Western Power has also reduced the scope of the South West bulk reinforcement project, which aims to increase power transfer capabilities between generation sources in south-west WA and major load centres in the metro area.

Transfield Service’s alliance with Western Power will continue to deliver customer funded distribution and transmission work for the energy corporation.

A Western Power spokesperson told WA Business News if the work the Power Alliance intended to undertake was reallocated, it would be to Western Power’s existing service delivery mechanisms.

The energy corporation’s spokesperson said having a single alliance would allow the work to be more effectively and efficiently delivered, and the termination would not affect maintenance or upgrade work.

Downer EDI’s group general manager for corporate affairs, Maryanne Graham, said this change to the working relationship with Western Power had no material impact to the business.

In early February, Downer EDI announced $750 million worth of new contracts.

Downer EDI employed 60 people under the Power Alliance and Ms Graham said Downer EDI would “work to redeploy those 60 employees where possible.”

The engineering branch of Downer EDI currently has close to 2,000 employees in WA working on the Pluto gas processing plant among other projects.