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

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news