Canterbury power consumers' opinions sought on proposed increase in prices

The Commerce Commission is seeking the views of Canterbury consumers on an application by the lines company Orion to increase its electricity prices as it rebuilds its network following the earthquakes. Orion is also seeking to recover lost revenue and extra costs incurred as a result of the quakes.

Orion has applied to the Commission for permission to increase its prices and reduce its quality targets. Electricity distribution companies have their prices and quality standards regulated by the Commission. The Commission is now considering Orion’s specific circumstances, which may require prices that are greater than those it is currently allowed.

Today’s issues paper asks Canterbury electricity consumers to consider 10 questions about Orion’s proposal. Orion’s proposal is to increase prices to fund its future expenditure in its network and to allow it to recover $86 million from consumers for additional costs and lost revenue.

“It is important that Canterbury electricity consumers have their say. It is the Commission’s job to make a balanced, informed decision that provides the best long-term outcomes for Canterbury electricity consumers. In doing that we also have to allow Orion to charge prices sufficient to make the necessary investment in its network,” said Commerce Commission Deputy Chair, Sue Begg.

Consumers wishing to make a submission to the Commission should read the Issues paper and consider the questions posed in the paper. The Issues paper and Orion’s proposal are available at http://www.comcom.govt.nz/orion-cpp/

Submissions should be sent to regulation.branch@comcom.govt.nz by 5pm on 24 May 2013.

The Commission intends to reach a draft decision by 19 July 2013. A fact sheet explaining the regulatory regime can be found at http://www.comcom.govt.nz/cpp-fact-sheet/