3 February 2020 at 4:50 pm
Local electricity lines company, Orion, will be reducing its prices by an average of 6 per cent, effective from 1 April 2020.
Orion is responsible for the distribution of power from the national grid operator, Transpower, to 204,000 homes and businesses in the central Canterbury region. Its prices are regulated by the Commerce Commission.
Orion’s prices cover both Transpower’s costs of bringing power to the region and its costs of distributing power through its local electricity network.
The reduction in Orion’s prices reflects a decrease of 7.4 per cent in Orion’s cost of distribution, partially off-set by a 1.4 per cent increase in transmission costs from Transpower.
Orion’s charges for distribution and transmission costs combined represent 36 per cent of the average household power bill.
Whether this reduction in Orion’s prices is reflected in consumer’s power bills is at the discretion of electricity retailers.
Orion Chief Executive Officer, Rob Jamieson said, “The key component of the price reduction is the lower interest rate environment, which the Commerce Commission has factored in to our cost of distribution.
“Our revenues will continue to support Orion gearing up for the challenges of a rapidly changing energy sector.
“It is the start of an exciting new era for Orion as we adapt and grow to serve Canterbury’s changing energy needs and advance the long-term sustainability of our region.”
For more information about Orion's prices, visit: Our prices.