Lines firm’s investment proposal

A Dunedin-owned lines company, which is being taken to court by the competition watchdog, has revealed a $748 million decade-long investment plan.

Aurora Energy has published its first asset management plan, part of of a set of annual disclosures that the Dunedin City Council-owned company is required to submit to the sector regulator, the Commerce Commission.

The company made headlines this month when the commission said it would be prosecuted for failing to meet standards due to underinvestment.

‘‘We believe the network is safe,’’ Aurora chief executive Richard Fletcher told media yesterday.

He confirmed that the company, which split from Delta last year, would increase its network spend after several decades of underinvestment.

He declined to comment on future increases in line charges, prompted by the $748m spend on new developments, and renewing and maintaining the existing network.

Customers had traditionally paid some of the lowest line charges in the country.

Fletcher confirmed that shareholders – effectively Dunedin ratepayers – would not expect a dividend for at least three years.

The company’s network delivers electricity to 88,000 customers in Dunedin, Central Otago and Queenstown Lakes.

Aurora’s 10-year plan includes a proposal to replace 10,000 poles, including 6000 over the next three years.

The company is facing a potential fine of up to $5m for charges brought under the Commerce Act.

Aurora told the commission it had breached the standards in 2016 and 2017, as part of its obligations as a regulated monopoly, sparking the investigation that led to the charges. It also breached its standards in 2018, which will be further investigated. Those issues were historic, and the company’s new management was addressing the concerns, Fletcher said.