17 June 2015

Multi-million dollar increase in Auckland transmission prices still on the table

EA proposal to increase transmission costs for Aucklanders by up to 62%

The Auckland Energy Consumer Trust (AECT) today expressed disappointment at the three transmission pricing options released yesterday by the Electricity Authority, all of which will result in Auckland households and businesses paying a significant increase in Transpower’s electricity transmission costs.

AECT Chairman William Cairns says he is disappointed that the Electricity Authority was persisting in putting forward options that would significantly increase transmission costs charged by Transpower to Auckland consumers.

“All three transmission pricing options the Electricity Authority released yesterday for consultation result in a significant cost increase for Auckland consumers, with the base option increasing transmission costs by 59%, an average increase of $192 per year for each Auckland customer.

“Under all of the proposed changes Auckland consumers will be the most impacted in terms of dollar increase in total contribution to transmission charges. We believe the costs of the HVDC link should continue to be paid for by South Island generators and other grid upgrade projects previously approved by the EA should be funded as agreed at the time,” he said.

Mr Cairns said the amount that could be shifted to Auckland customers from other parts of the country was substantial at more than $100m a year.

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