Prime Minister John Key, on a briefing and tour of damage to a damaged substation and power cables in Bexley, following the second Christchurch earthquake. File photo / NZPA
The Commerce Commission is giving the Christchurch public a say on local lines company Orion New Zealand's plan to claw back the extra $86 million it needs to rebuild its network, which was damaged by the Canterbury earthquakes.
The antitrust regulator has released an issues paper asking Canterbury
electricity consumers their views on Orion's proposal, which would lift the average household bill by 5 per cent, or $8.70 a month. The lines company, owned by the Christchurch and Selwyn councils, applied to the commission in February to increase its prices and reduce its quality targets.
"It is important that Canterbury electricity consumers have their say," deputy chair Sue Begg said in a statement. "We also have to allow Orion to charge prices sufficient to make the necessary investment in its network."
Thousands of Christchurch residents lost power during the spate of earthquakes through 2010 and 2011, costing Orion $20 million in extra operating costs and forcing it to signal it would have to increase indebtedness significantly in the coming years.
Submissions close on May 24, with a draft determination scheduled for mid-July and a final decision in November. That would mean Orion's new pricing plan could take effect from April next year.
