13 Nov 2012

Higher power price prospect

8:59 pm on 13 November 2012

Wellington residents could be asked to pay more for power, after a report found a major earthquake could have devastating consequences for the region.

The report, prepared for utilities and Civil Defence agencies, looked at the potential impact on infrastructure of a magnitude 7.5 earthquake.

The report said most residents would be without gas for nearly three months and without power and water for at least three weeks.

Wellington Electricity, a lines company, says work to strengthen substations could cost more than $20 million, because 60% of the Wellington network is underground to protect it from strong winds.

The company will consult the community next year.

Greypower questions burden on Wellington

Greypower says Wellington residents should not have to bear the full cost of earthquake strengthening its electricity network.

Its energy spokesperson Allen Davies says the upgrade work would increase the asset's value.

Mr Davies also wants to know why the substations haven't been upgraded until now.

A consumer advocate has also questioned the plan.

Former Green MP Sue Kedgley wants to know why Wellington Electricity can't absorb the costs of earthquake strengthening its network itself, rather than hiking power prices.

She says the upgrade work would also improve the value of the company's assets.

However, Ms Kedgley says she's sure consumers would be willing to pay a little more to ensure the network could withstand a major quake.