Chief executive Steve Boulton told EnergyReview.Net recently there were still 28 lines companies around the country, but said he could see that number dropping drastically during the next few years to 10 or so.

"We would be happy to talk to anyone about the benefits of working together, managing assets such as control rooms, or merging utilities. We are fairly relaxed about the approaches we have made or that have been made to us," said Boulton in New Plymouth.

Topics of discussion with other lines companies could include possible asset acquisitions, total buyouts, mergers or network management contracts.

It is understood Powerco is interested in talking to several smaller North Island energy distribution companies - such as the Lines Company in Te Kuiti, Wel Network in the Waikato, Gisborne-based Eastland Network, Dannevirke's Scan Power and Electra on the Kapiti Coast north of Wellington.

However, Boulton dropped a big hint that a jump across Cook Strait was possible, if not probable in the future. " We do not have a South Island base, yet."

Boulton said one of Powerco's key values was core competency in network services which, over time, would deliver benefits to consumers and keep prices stable. There were economies of scale which came through a bigger company and a greater geographical coverage of customers.

Powerco last month said it intended buying part of Auckland-headquartered UnitedNetworks to become New Zealand's largest gas distributor and second largest electricity distributor, effectively doubling the size of its network and giving it gross assets of about $NZ1.7 billion and approximately 391,000 consumer connections.

The $NZ810 million purchase will see its electricity distribution networks extend to the Coromandel, Thames, eastern Waikato and Tauranga regions, on top of the existing Taranaki-Wanganui-Manawatu-Wairarapa network. Its gas networks will extend to most of Taranaki and the Hutt Valley-Porirua regions of greater Wellington, Wellington city, the Hawke's Bay cities of Napier and Hastings, and the Manawatu-Horowhenua, including Palmerston North city.

Powerco today announced a new equity raising method, known as "jumbo" placement, as it seeks to raise $NZ150 million for the new $NZ810 million acquisition.

The method, properly described as a priority entitlement offer, gained the "jumbo" nickname in Australia because it allows listed companies to make very large placements of shares to institutional investors. It means all existing shareholders are offered, on a pro rata basis, the right to buy new shares.

New Plymouth-headquartered Powerco employs about 300 people around the North Island and 150 people in Queensland, where it has a network services operational base.