Tuesday, 19 May 2020

Comcom: How Otago residents will pay for Aurora's mistakes



Richard Healey

A few points here. We have no idea what the final butchers bill will be from this disaster. The current management are burning money and resource at a distressing rate - and under achieving alarmingly.

This is not an "ageing asset", except in the sense that all assets age. This is a poorly managed and savagely neglected asset that is improving only slowly while absorbing enormous resource.

Note that the commission refers to the cost of funding the network into the future, it does NOT talk about the huge number of dollars spent to date, without commission agreement. Aurora have lost their way on this, as they have in so many other places. Recovering that money is an entirely different question.

This price hike is not "the fix" Aurora will apply for another CPP hard on the heels of this one.

Unless Aurora are forced to act like a competent business they will destroy other businesses, increase energy poverty and prevent a timely recovery from the fallout from covid - 19. The Council has proven that it is only interested in spinning the "yes its terrible, but we have three right people to fix it" message.

Nothing could be further from the truth.

https://comcom.govt.nz/regulated-industries/electricity-lines/projects/our-assessment-of-aurora-energys-investment-plan

See separate post


https://www.stuff.co.nz/business/121554439/massive-bill-hike-looms-for-otago-lines-company-customers

A linesman works on a power pole in Cromwell as part of Aurora Energy's Fast Track poll programme.
Stuff
A linesman works on a power pole in Cromwell as part of Aurora Energy's Fast Track poll programme.

The commission, when analysing the company's proposal, would have to balance the impact to the 90,000 affected households, farms and businesses and ensuring the safety of the network.


ODT:

The Commerce Commission has laid out how everyday Otago households, already hit by Covid-19, will likely be forced to pay 18% more for electricity...
The Commerce Commission has laid out how everyday Otago households, already hit by Covid-19, will likely be forced to pay 18% more for electricity...

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