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Revised proposal would result in transmission price hike


16 December 2016

Revised proposal would result in Aucklanders facing $59 million transmission price hike

Auckland consumers will be hit with a $59 million per annum increase in transmission prices while electricity generators such as Meridian and Contact would still receive a windfall gain under a revised Electricity Authority consultation paper released earlier in the week, says Entrust Chairman William Cairns.

Mr Cairns said it was extremely disappointing that the revised consultation paper largely ignored feedback from Aucklanders who took the time to submit on their initial consultation paper earlier in the year.

“While the Electricity Authority have tinkered with their proposal, they have ignored the fundamental issues that concern Aucklanders such as a large increase in transmission prices while electricity generators such as Meridian and Contact and the owners of Tiwai Smelter financially benefit,” he said.

“We know Aucklanders are concerned about this issue as we saw an unprecedented response from Aucklanders about this issue earlier in the year, with a large number of submissions opposing the proposal made to the Electricity Authority via our website.

“The $59 million increase would see average residential customers paying approximately $74 extra each year, while small businesses would face a $113 increase each year, schools an additional $1,200 each year and large electricity users like hospitals paying up to $17,000 extra every year.

“We believe it is fairer to spread transmission costs equally across all users of the grid including electricity generators. This is fairer and in the long term interest of consumers,” he said.


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