Aurora Energy price hike: Company bows to public pressure, lowers increases

Aurora Energy had proposed an increase of $20 to $30 a month for most of its 90,000 customers. Photo / 123RF

A Dunedin Council-owned electricity provider has bowed to public pressure over prices.

Aurora Energy sought permission from the Commerce Commission to hike its prices so it could invest $520 million in its deteriorating networks in Dunedin.

It proposed an increase of $20 to $30 a month for most of its 90,000 customers.

Central Otago and Queenstown customers saw the hike as unfair.

Aurora has now changed its tune - so costs reflect the maintenance and administrative costs of supplying each region.

That will see a modest reduction for those in Queenstown and Central Otago.

The first price change will take effect in April.

General manager customer and engagement Sian Sutton said: "During consultation, we heard very clearly concerns from customers and stakeholders in Central Otago and Queenstown who felt regional pricing was unfair, and who questioned the basis for allocating different costs to different regions.

"We agree with our customers' views that prices must be set fairly and based on efficient costs to deliver the services they use. We listened to that feedback and are making changes in two stages as a result."

An independent review of Aurora's network previously identified more than 300 overhead line, pole and crossarm failures between 2015 and 2018. Sixty-one were classed as serious-hazard events.

The Dunedin City Council-owned company was fined $5 million last year for breaching quality standards in 2016-19.