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Wellington Electricity to charge customers more

Author
NZ Newswire,
Publish Date
Thu, 1 Feb 2018, 9:59AM
The extra charge will pay for earthquake strengthening of the network. (Photo / File)
The extra charge will pay for earthquake strengthening of the network. (Photo / File)

Wellington Electricity to charge customers more

Author
NZ Newswire,
Publish Date
Thu, 1 Feb 2018, 9:59AM

Wellington Electricity has been given the green light to charge consumers in the region an extra $1.90 a month to recover the $31 million needed to earthquake- strengthen the capital's electricity network.

The Commerce Commission on Thursday released its draft decision on WE's proposal to recover the cost to bring in emergency hardware, mobile substations, switchboards and enhanced communication systems into the region, along with seismic reinforcement for substations.

"We are satisfied that the expenditure is needed and has been costed appropriately to ensure Wellington's network is better prepared to withstand a major earthquake," commission deputy chair Sue Begg said.

The average electricity bill for the 160,000 homes in Wellington is $160, and $1.90 will be added to recover the resilience costs.

"When taken together with lower transmission charges signalled by Transpower, we expect monthly bills will reduce in the coming year, assuming the cost of energy and other components do not change," Begg said.

WE would need to demonstrate it has made the resilience improvements and "it will be penalised for under-delivery", she said.

Public submissions on the WE proposal can still be made until February 22. A final decision is expected by March 29.

- NZ Newswire

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