A billing error for the past year meant almost 20% of Stewart Island’s power consumers were undercharged a total of $23,427.04
Stewart Island councillor Jon Spraggon said a Southland District Council staff member discovered 87 of its 440 customers had been undercharged between July 2023 to November 2024 while reviewing the Stewart Island Electricity Supply Authority’s (SIESA) accounts.
Cr Spraggon said the error started after a variety of fee structures were not properly adjusted after the 2024 price increase.
"When SIESA was set up there were a whole variety of different charges and, somewhere along the line, they’ve still been sitting in the background. When we made a couple of alternations, some off them weren’t picked up on."
The island’s homes were no longer on night store rates but the supplied electricity was still being charged at the lower tariff.
Cr Spraggon said the fee structure had been updated and simplified from 28 charge types to two tiers to prevent billing errors happening in the future.
"The miscellaneous accounts have been taken out of the system and it’s had a good tidy up."
Four properties were undercharged $873.24 for their water heating. Thirty-seven consumers were charged an incorrect monthly charge, totalling $337.68.
But 46 customers were uncharged a total of $22,216,12.
While the undercharged commercial consumers had opted to fully settle their debt in total, other customers were offered to pay off their account in instalments.
"Everyone was given the option of paying it off over a period of time."
Undercharged accounts less than $120, or if the property had changed hands, were written off.
"One or two customers had muttered [at the news], but have agreed they should pay it," he said.
The error was noticed about November and Mr Spraggon and community board chairman Aaron Conner met with the island’s customers to "formulate a plan for how we’re going forward."
Cr Spraggon said SIESA had been having some billing difficulties, including some customers not receiving regular bills.
The billing shortfall came when the company was "trying to get every cent we can in".
Council staff met with the island’s residents last month to discuss a recommended electricity generation option which included a solar power supply with a battery storage back up to replace the island’s diesel generated supply.
Cr Spraggon said since the meeting, he had not received any negative feedback from the community.
He was surprised people who had formerly opposed other generation proposals were in support of the solar generation option and happy to see some progress. "So it looks like it’s going to have a good outcome."
Wind turbines had been one suggested power source, but the company had to acquire land to build them.
But the company already owned land that was being investigated as a suitable site — which had been a big advantage, he said.
"We have no intention of buying land to put the solar farm on.
"It’s [now] all dependent on getting government funding."
- By Toni McDonald
