Government must act to ease power price pressure

Gerry Brownlee must sit down with Orion soon to get a better deal for Cantabrians than the new plan to impose the network’s $155 million in earthquake costs on households, say Labour’s Canterbury MPs.

“In another blow to Canterbury residents, power prices look set to increase to cover the $155 million price-tag the earthquakes have imposed on the Orion network,” says Labour’s Earthquake Recovery spokesperson Lianne Dalziel.

“There must be some respite for the people of Canterbury. They shouldn’t have to cover the entire cost of the network’s damage.

“Orion seems to have had no other options. Its revenue is down $30 million, its price path is capped until 2015 as a regulated natural monopoly and it has no choice but to repair the lines, poles or cables even though there is no insurance cover to help.

“Gerry Brownlee needs to sit down with the board of Orion and work through the issues. I understand he hasn’t even met with them yet. That’s not good enough.”

Labour MPs are urging the people of Canterbury to make submissions to Orion, but to send a copy to the Minister as well.

“Although the Commerce Commission will ultimately make the decision, it is important that the Government hears what the public has to say,” says Lianne Dalziel.