TrustPower puts brakes on Oracle implementation

Project faces significant cost-overruns; TrustPower second utility to suspend Oracle job

TrustPower has taken similar action to Meridian Energy in suspending an implementation of Oracle software.

In its third quarter results, posted in the NZ Stock Exchange today, TrustPower notes:

“In late 2008 TrustPower engaged Oracle to deploy its utilities Suite to replace TrustPower’s existing customer information system in order to improve process efficiency.

“Following the completion of the design phase TrustPower and Oracle are now able to predict the duration and cost of the development and implementation of the system, and both of these features have exceeded the planned duration and cost established at the commencement of the project.

“As a result TrustPower has decided to pause further implementation of the project in order to establish possible ways of reducing the project’s cost and duration, and to consider alternative courses of action.

“In the meantime, TrustPower will continue to utilise its existing customer information system until a system with the enhanced characteristics that the company seeks is chosen.

“To date, approximately $9.5 million has been committed to the project, including capitalised internal time and this is the limit of TrustPower’s commitments to date.

“It is likely that a proportion of these costs will be impaired once a full review of available options has been completed over the next two to three months.”

The suspension of the project is similar to the situation at fellow power company Meridian Energy, which last year put on hold an Oracle billing and CRM software project.

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