Call to justify increased lines charges

A call for lines companies to justify their increased charges has been launched, as they get ready to hit consumers with steep increases.

It comes as all of the lines companies in the South have signalled an increase in their charges, the highest increase being Network Waitaki’s 19.3%.

Powernet, which manages electricity networks on behalf of Electricity Invercargill Ltd and The Power Company Ltd in Southland, has a maximum allowable increase of about 8%-10%.

Network Waitaki said it in its public notice this increase was necessary to allow it to "operate efficiently and target a secure and reliable supply of electricity through appropriate levels of investment".

Aurora Energy lines charges will increase by an average of 11.5 % from April.

The company said on its website the increased charges reflected "the significant investment we have made as part of a five-year safety, reliability and future capacity-building programme, which was approved by the Commerce Commission in 2021 after public consultation".

"These adjustments include considerations for inflation and changes in transmission costs."

The Commerce Commission has also supported the increase on its website.

"While higher revenue limits will mean consumers pay more, maintenance and improvements to the electricity network paid for now will help keep the lights on and delaying investment would lead to even higher prices later," it said.

But Grey Power national president Gale Chambers said she was tired of lines companies using infrastructure repairs and projects as an excuse.

"My feeling is they’ve been saying this for 25 years.

"Why leave it until the infrastructure is getting so bad that they have to now do it, and all of a sudden it’s our problem?"

Ms Chambers said it was time for lines companies to acknowledge the burden their increases had on vulnerable people, particularly those on fixed incomes.

"It’s time for them to justify their costs.

"The message I would give is that not one solution fits all.

"So whereas there are people out there who can afford the electricity hikes ... there are a lot of people that can’t and they are going to really suffer come winter."

Ms Chambers said while her organisation offered low-cost options through power companies such as Pulse Energy’s Grey Power Electricity, even those were struggling to mitigate the price increases.

"What we do suggest to people is if they are thinking of switching, they do check to make sure that their power bills are going to be considerably lower."

Victoria University of Wellington research fellow Max Rashbrooke said energy poverty was a very real issue for hundreds of thousands of families.

"Mostly the attention is around soaring prices that are putting manufacturers out of business.

"But it also doesn’t serve the poor very well."

Mr Rashbrooke said people in energy poverty were often having to choose between heating their house and buying food for themselves and their children.

"So power does get skimped on because to an extent you can manage — it’s better than going without food."

matthew.littlewood@odt.co.nz

 

 

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