TRUSTPOWER BLAMES RISE IN COSTS FOR PRICE HIKE
29 May 2008
By STEVE HEPBURN
TRUSTPOWER is raising prices for its customers in parts of rural Otago.
The power company said electricity prices would rise on average by about 8.8% from July 1. The area covers from Outram to just south of Balclutha, inland to Raes Junction, parts of the Maniototo, inland to Middlemarch, and north to past Shag Point. It is the area serviced by the old OtagoNet network.
TrustPower community relations manager Graeme Purches said the rise was made up of both increases in line charges, and generating and retail costs.
He said Transpower, the national grid operator, had increased its charges by 20%, while the lines company, now owned by Invercargill company PowerNet, has increased its charges by 3.4%.
The rest of the increase was because of increased wholesale power prices, and rising retail costs for TrustPower, such as increased wages and fuel costs.
He said the increase for the average customer was about $3.30 a week, made up of $2 from the generation and retail components of the bill, and the rest from the two lines companies.
The increase was on the high side of regional price rises Mr Purches had seen, but could be blamed on higher wholesale electricity prices and the whole area being a reasonable distance away from generation.
The price rise resulted from the company's annual review.
© Copyright 2008 Allied Press Limited. All Rights Reserved.
Otago Daily Times
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