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

 


Com Com decision on Orion's network prices

Media statement - for immediate release

8.40am, 29 November 2013

Commerce Commission decision on Orion's network prices and reliability targets

Orion notes the Commerce Commission released its final decision on Orion's post-earthquake pricing and reliability targets today. Orion will now thoroughly analyse the 245 page report.

Under the Commerce Act, the Commission determines Orion prices and reliability targets. Based on the Commission's belief of what is in the best long term interest of electricity consumers in Christchurch and central Canterbury, the Commission has announced an above-inflation price increase for Orion of 8.4 percent in April 2014. Annual increases at CPI plus one percent will be allowed for the four following years. Orion's charges make up around one quarter of a household's electricity bill.

Since the February 2011 earthquake, Orion's prices have been frozen in real terms despite its costs rising in the rebuild environment and its revenue being severely reduced. Orion's price increases have been below inflation since 2001.

"Orion is very mindful of the impact any price increase has, especially for those on lower incomes. However, it is critical we ensure our network is resilient enough to protect our community from future disasters that may strike. Despite this increase, Orion and its shareholders will incur a substantial financial impact from the Canterbury earthquakes," says Orion CEO Rob Jamieson.

"Our driver is, and always has been, to manage our network in the best long term interests of consumers and our community. This means we need to restore our network to pre-quake levels of resilience and reliability and support the rebuild of Christchurch. That is a responsibility we take very seriously," continues Mr Jamieson.

"An example of the importance of network resilience is the seismic strengthening work that we started in the 1990's. This work, which was industry leading, protected much of Christchurch after the February 2011 earthquake and prevented continual blackouts potentially lasting months".

"There's a lot for us to consider in the Commission's decision. Our next step is to work through the detail".

"Despite being unique amongst electricity network companies in facing huge earthquake costs as well as business-as-usual costs, this decision means that our pricing will still be below the New Zealand average. Our network infrastructure plans are also now the most scrutinised in New Zealand. Those plans provide a great platform for us to continue the work required to restore the network's resilience," says Mr Jamieson.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news