Orion Prices Drop Third Year In A Row
Local electricity lines company, Orion, will be reducing its prices by an average of 1.1 per cent, effective from 1 April 2021.
This year’s reduction marks the third year in a row Orion has reduced its prices, bringing the price for delivering electricity locally down by more than 14 per cent since 2019.
Orion is responsible for the distribution of power from the national grid operator, Transpower, to more than 210,000 homes and businesses in the central Canterbury region. Its prices are regulated by the Commerce Commission.
Orion’s prices cover both Transpower’s costs of bringing power to the region and its costs of distributing power through its local electricity network.
The 14.6 per cent reduction in Orion’s prices over the past three years reflects a decrease of 8.8 per cent in Orion’s cost of distribution, and a 5.8 per cent decrease in transmission costs from Transpower.
Orion’s charges for transmission and distribution costs combined represent 35 per cent of the average household power bill. Whether this reduction in Orion’s prices is reflected in consumer’s power bills is at the discretion of electricity retailers.
Interim Orion Group Chief Executive, Jono Brent said, “Making electricity more affordable has never been more important.
“We are conscious of our part in the cost equation, and are looking closely at how we can operate more efficiently, and open up opportunities for our region to decarbonise.
“As a clean and renewable energy source, electricity has a big role to play in reducing our carbon emissions to address the climate crisis.
“It is vital New Zealand makes electricity an attractive and viable option for everyone, especially those struggling to pay their power bills, running businesses and looking for ways to support the country’s efforts to tackle climate change.”