Wanaka councillor Quentin Smith says drop in the price increases proposed by Aurora Energy remain “completely unaffordable” for many Upper Clutha residents.

The electrical lines company has historically under-invested in its network, causing deterioration that will cost hundreds of millions of dollars to rectify. It is seeking a steep hike in households’ power prices to help pay the investment bill.

Aurora’s first price increase proposal made headlines when it was revealed residential line charges could increase, on average, by $21 per month in year one alone.

Following the backlash, Aurora has proposed to lower the overall customer price increases from an average 18 per cent to a 13 per cent increase.

Quentin says this isn’t good enough.

“While it is great to see the increases reduced in Wanaka from 23 per cent down to around 16 per cent it remains completely unaffordable for many residents of the Upper Clutha and completely unreasonable increase in an essential service,” he told the Wanaka App on Friday (June 12).

Quentin said the Queenstown Lakes District Council is currently debating an amended annual plan where it is “bending over backwards” to reduce rates impacts because of the financial pressures brought about by COVID-19.

Quentin Smith says the revised pricing equates to almost $400 increase per year on average in Wanaka.

“This increase in electricity costs proposed by Aurora will blow any savings we make out of the water by many magnitudes,” he said.

Aurora Energy CEO Dr Richard Fletcher said the company understands the price rise “will be difficult” for some customers, and the company has tried to reduce the overall proposal and look for ways to offset the pricing, including exploring an energy assistance programme. 

“However, the alternative to raising prices is a continued deterioration in the safety and the reliability of the networks that power our communities,” he said.

Last week the company made its formal application for a customised price-quality path to the Commerce Commission.

The Commission is due to make its final decision on the investment plan in March 2021, with consumer price increases taking effect from April 1, 2021.

PHOTOS: Supplied