A public drop-in session on Aurora Energy’s proposed electricity bill hikes drew around 15 locals to the Lake Wanaka Centre yesterday (Wednesday November 25), where some people joined the growing chorus of criticism over proposed price increases. 

The electricity lines company is seeking substantial hikes in its energy prices across the district to fund upgrades and fixes to its failing network. The Commerce Commission, which is assessing Aurora’s application for the pricing changes, was in Wanaka to get local residents’ views on the subject. 

“Locals expressed strong views about how and why it was that Aurora’s network had been allowed to deteriorate, and who was to blame for it,” a Commerce Commission spokesperson said following the meeting.

They faced a tough audience in Wanaka as residents here and in Central Otago are facing the largest price increases in the region.

“Some asked why the shareholder Dunedin City Council was not being asked to foot the bill and why local consumers were having to do so when it was not their fault,” the representative said. 

“Some expressed a lack of confidence in Aurora.”

Wanaka and Central Otago residents are facing much more substantial increases to their bills than people in other parts of the region.

In a draft decision on Aurora’s application for the price changes released two weeks ago, the Commerce Commission was blunt about the public perception of Aurora around Otago and also substantially cut Aurora’s proposed spend on the upgrades. 

Still, power bills are due to go up dramatically: In Wanaka and Central Otago (grouped together under Aurora’s pricing strategy) power consumption costs are due to increase by $612 a year for ‘medium’ users and $876 for ‘large’ users by 2026.

This compares to average increases of $384 in Dunedin and $396 in Queenstown.

This discrepancy has drawn recent criticism from local mayors Jim Boult and Tim Cadogan, with Tim saying his district would take a “hiding”. 

An Aurora spokesperson told the Wanaka App its pricing was regulated by the Electricity Authority through a set of economic pricing principles and pricing guidance notes.

“The higher prices in the Central Otago/Wanaka pricing region are largely attributable to the large geographic area that the network covers, combined with relatively low customer density,” they said. 

However, the Electricity Authority said it was currently working to determine the pricing in the two locations was appropriate, following concerns raised by Aurora customers.

“The Authority is taking a deeper look to determine whether Aurora’s regional pricing approach appropriately reflects the costs of its network,” a representative said. “This means we are checking how Aurora allocates its various charges around the Otago region against the Authority’s distribution pricing principles.”

The Electricity Authority told the Wanaka App it had engaged pricing experts to help with this assessment and said its findings will be shared once they’re fully tested. 

The Commerce Commission, which is consulting across the district this month, will release its final decision on Aurora Energy’s pricing on March 31, 2021.

PHOTOS: Wanaka App