Aurora Energy and deferred line charges

A common question being asked by Dunedin ratepayers is should Aurora be sold or retained? I wish to add some information that may help some in making that decision.

The following quotation is from a 31.3.21 Commerce Commission publication. It allowed Aurora Energy Limited to spend $563 million over five years on upgrading its network using a CPP mechanism. (Customised Price Quality Path)

Associate commissioner John Crawford said “the impact on electricity bills will be significant. To help mitigate the impact of increased bills we have capped Aurora’s annual revenue increase at a level of approximately 10% per year. Revenue that is deferred as a result of this cap will need to be recovered in the next regulatory period from 2026 onwards”. Aurora has flagged that it will be requesting another fiveyear CPP to follow on from 2026. Aurora information disclosure for year ending March 31, 2023 (schedule 3) lists a regulatory profit of $55.89m.

Since 2021 a full recovery of the required revenue from line costs charges has not been paid by power users. This deferred income will have to be paid by consumers after 2026, additional to line charge increases by the Commerce Commission authorising the 2026 CPP.

Some questions: why is Aurora listing a profit when it has deferred income owing and that is incurring finance interest?; who will the recipient of the profit be?; has Aurora Energy been transparent publicising these increasing costs to Dunedin ratepayers, a condition of the CPP?; can the DCC, DCH and Aurora Board members and management be trusted by not disclosing these facts prior to a sell or retain submission period?; what will line charges escalate to in the future? Is the Commerce Commission looking after the public they are supposed to protect? Sell or retain, is your choice. Steve Tilleyshort

Karitane