The second installment of Aurora Energy’s electricity line charge increases will take effect on April 1, and some customers are already reeling at the jump. 

The Wānaka App was approached this week by a member of the public who had received notification that their fixed daily line charge would double and their usage charges would also increase.

The new, higher prices are the second in a series of increases by electricity distribution network Aurora Energy which will continue until 2026. 

The increases were first implemented in April last year when electricity line charges for the average residential bill increased by $9.19 each month for all of Aurora’s 22,000 Central Otago and Upper Clutha customers. 

The annual increases were approved by the Commerce Commission after Aurora applied for substantial increases to fund infrastructure upgrades after decades of underinvestment.

Aurora Energy regulator and commercial general manager Alec Findlater said the company had consulted extensively on the changes.

“During consultation, we were clear that revenue from line charges would need to increase more than it had in the past to recover the increasing costs of managing the electricity distribution network,” Alec said.

Still, the increases have surpassed the original forecasts: While the Commerce Commission restricted the amount Aurora Energy could recover from customers, there was also an adjustment mechanism available if the Consumer Price Index and other charges increased, Alec said.

“This has resulted in the revenue cap for the year ending March 31, 2023 increasing to 13.7 percent.”

In addition, more regulatory change has occurred that affects pricing: In December 2021, the government began a phased withdrawal over five years of the low fixed-charge tariff for domestic customers, which enables electricity distributors to increase their line charges by a set amount.

On average, line charges make up around 37 percent of a customer’s total electricity bill, including the transmission charges. 

“Electricity retailers (who send customers their bills) can repackage line charges differently, so the line charge component on bills may vary for each customer,” Alec said. 

The latest electricity line charge increases will take effect from April 1.

PHOTOS: Supplied