23 Nov 2012

Orion plan to raise prices to cover quake damage

5:14 pm on 23 November 2012

Canterbury lines company Orion is proposing to raise its prices to power companies by an extra 5% over the next decade to cover costs of fixing its earthquake-damaged network.

Orion says the damage means it will have to spend $155 million more than it had planned to over the next seven years.

Orion chief executive Rob Jamieson says lines costs account for about 25% of power bills.

A household with a $180 monthly power bill would pay an average of $8.50 more per month over the next 10 years.

Orion hopes to get approval for the price increase from the Commerce Commission by the end of 2013 and Mr Jamieson says it is likely to come into effect from April 2014.

The public will be able to give feedback over the next month and again next year through the commission.