Meridian picks billing software

Meridian Energy is understood to have selected Oracle software to replace its billing system in a deal likely to be worth tens of millions of dollars.

Meridian announced in February it was looking to replace its Gentrack billing system.

Spokeswoman Claire Shaw says it has selected a provider, but is not in the position to make an announcement. She would not comment on rumours that some of the implementation work for the system would be done in the Philippines for $24 million.

"What we can tell you is that the main contingent of staff are sited in New Zealand, with a specialised development contingent based internationally."

The cost of the project is commercially sensitive, "but in line with other billing systems", she says.

Contact and TrustPower have both bought new systems recently.

Contact is understood to have approved an $80m budget to replace its Gentrack billing, finance and operational systems with SAP software, with $20m set aside as a contingency to meet the cost of overruns.

Contact said in July that IBM would be the prime contractor, but spokeswoman Louise Griffin says it will be deciding on an implementation partner for the project soon.

TrustPower will spend $18m replacing its Gentrack customer-care and billing system with Oracle software, and claimed it had managed to score better value for money than Contact.

Electricity retailers usually need to upgrade or replace their systems to provide customers with smart meters, which allow customers to monitor power use and retailers to vary pricing according to fluctuations in spot electricity prices.

Genesis Energy said last year it had upgraded its Gentrack system in preparation for the meters.

- © Fairfax NZ News