Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Regulator clips Orion’s attempt to claw back quake costs

Regulator clips Orion’s attempt to claw back $86 mln in earthquake costs

Aug 14 (BusinessDesk) - The Commerce Commission plans to let Christchurch electricity lines company Orion New Zealand hike its prices to recover earthquake rebuilding costs, but in a much smaller way than Orion is seeking.

The regulator’s draft decision would let Orion lift prices 9.2 percent in 2014, or about $5.20 a month for a typical household, with further annual increases at the rate of inflation until 2019, it said in a statement. That’s lower than Orion’s proposal to hike prices 15 percent, or $8.50 a month, in year one, with subsequent annual increase of inflation plus 1.2 percent until 2019.

Orion was hoping to squeeze an extra $86 million out of its customers to rebuild its network, which was damaged by the Canterbury earthquakes, of which half would be recovered in the five-year period. The regulator took the view that it should only be able to claw back $28.6 million in the period.

“We consider Orion’s customised pricing proposal to the commission asks for ‘too much, too soon’,” deputy commission chair Sue Begg said. “We have allowed Orion more income to cater for changes in demand and to recover future higher costs caused the earthquakes, but the full level of expenditure Orion has sought is not supported with sufficient evidence in its proposal.”

Thousands of Christchurch residents lost power during the spate of earthquakes through 2010 and 2011, costing Orion $20 million in extra operating costs and forcing it to signal significantly increased debt levels in coming years.

The lines company, owned by the Christchurch and Selwyn councils, applied to the commission in February to increase its prices and reduce its quality targets.

Interested parties can make submissions on the draft determination until Sept. 20, with cross-submissions due by Oct. 11. A final determination is expected by Nov. 29, to take effect for the year starting April 1 2014.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news