Otago man living without power for 18 months wins over electricity supplier

Alan Dunlop's remote house at Mt Allan. Photo / supplied.

A man living near Mosgiel without electricity for more than 18 months is hailing a victory for the ''wee guy'' after an out-of-court settlement with an Otago electricity supplier.

Alan Dunlop said the electricity supply to his house in Mt Allan Rd, about 20km from Mosgiel, was lost after a ''big flood and snowstorm'' in June 2013 and was never restored because it was uneconomic.

After he complained, the Electricity Authority launched a criminal prosecution alleging OtagoNet Joint Venture did not supply electricity as soon as was reasonable and a confidential, out-of-court settlement was made.

OtagoNet and Mr Dunlop have since reached an alternative agreement, OtagoNet paying for a solar power system instead of restoring electricity.

''That cost [OtagoNet] a fair whack ... they gave us a whopping hunk of cash,'' he said.

Until he organised the solar technology, he was using gas and a diesel generator at the house, he said.

The settlement, which was separate to the solar agreement, was an important ''victory for the wee guy'', because it sent a message to the residents in remote New Zealand houses ''at the end of the line in the middle of the wops'' to stand up to electricity suppliers.

He took the supplier ''to task'' because he knew he had grounds to prosecute.

''When these power companies won't reconnect power, it is a criminal act.''

He was pleased the supplier got a ''good rap across the knuckles from the Electricity Authority''.

Authority chief executive Carl Hansen said it was the first time an electricity supplier had been prosecuted under the relevant section of the Electricity Industry Act 2010.

''The settlement achieved everything we wanted to get out of a prosecution.''

OtagoNet admitted it breached the Act, apologised, paid reparation to Mr Dunlop, contributed to the authority's legal costs, and made a donation to several charities in place of a penalty under the Act, Mr Hansen said.

Although the settlement meant a legal precedent had not been set, the electricity industry had been sent the message the authority would prosecute to protect consumers, Mr Hansen said.

A supplier was responsible, no matter the cost, to resume an electricity supply as soon as reasonable, or make an alternative arrangement with the consumer.

''You can't leave customers in the lurch.''

The provision in the Act had existed since 1992 when supply companies were being ''corporatised'' during the energy sector reforms.

PowerNet chief executive Jason Franklin said he was happy a fair settlement had been reached.

''All parties are happy with the settlement, so therefore it must be fair.''

PowerNet managed the electricity network of OtagoNet, Electricity Invercargill and the Power Company.

Marlborough Lines is no longer part of the company.