Buller Electricity (BEL), the community owned lines network company that supplies the majority of electricity consumers in the Buller district on the South Island’s West Coast, has lodged a formal legal challenge opposing a 427% price increase in transmission charges due to come into effect on 1 April 2023.

BEL received notification from Transpower in December 2022 of exponential increases in transmission charges for the 2023/24 year, having previously advised both the Electricity Authority and the SOE that their new Transmission Pricing Methodology (TPM) would have unreasonable and seriously adverse economic consequences for the region.

The exponential price increase largely reflects a change to the way in which Transpower has classified Buller’s grid assets. The impact is particularly harsh given the small population, some 4850 end-consumers, across whom the increased charges would be levied.

Jan Coll, the Chair of the Buller Electric Power Trust, which owns all of the shares in BEL, said that at this point the lines company has no option but to pass on the majority of the price rise, which would see overall electricity price increases in the vicinity of 20% for residential consumers and 23.9% for commercial consumers.

“ It is a highly unfortunate and unreasonable decision by government agencies to impose extraordinary cost increases on a region that is already struggling economically and on a community that has been hit hard in recent times and has relied on emergency Government funding to help it through,” said Mrs Coll. “We are deeply concerned about what these price increases will mean for the well-being of the people and businesses of Buller, who are already facing extreme economic pressures, if BEL is unable to turn this decision around.”

Shannon Hollis, BEL Director, said “It is unfortunate that it requires court proceedings, but we have no other avenues. Transpower has made clear it is unwilling to reconsider its approach, which means legal action is the only step left open.”

Ms Hollis noted that given the magnitude of the increase, BEL is simply unable to absorb more than a small percentage of the total increase – to do otherwise would seriously jeopardise the operation of the lines company and was not sustainable.

BEL has filed judicial review proceedings in the High Court against the Electricity Authority and Transpower seeking to quash the reclassification decision and applied to the Court for urgent interim orders to prevent it from having to pay the increased costs arising from the reclassification of assets on 1 April 2023 until such time as the company’s claims have been determined.

Note to Media:

With legal proceedings underway Buller Electricity Limited is restricted in what it can say about the legal process.

About Buller Electricity Limited

Buller Electricity Limited (BEL) is the local electricity distribution company supplying some 4850 end consumers located on the northern West Coast of the South Island. The BEL distribution area extends from Meybille Bay in the south (5km north of Punakaiki), to Karamea in the north.

Much of the distribution area covered is rural incorporating significant dairy and beef farming, with the main population being based in the Westport township. Coal mining at the Stockton opencast mine continues to be a major employer and electricity consumer in the region.

Established in 1947, the Company is owned by its consumers via the Buller Electric Power Trust.

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