Power company Aurora Energy's final asset management plan (AMP) reveals it is forecast to spend nearly $750 million in the next decade, with a price increase predicted for the company's 88,000 consumers in the Otago region in the next three years.
Aurora Energy chief executive Richard Fletcher released a report to media on Friday detailing the plan for the next 10 years.
The AMP was now forecast at $748.4 million, $20.9 million more than forecast in the interim 2018 AMP.
The power company is owned by Dunedin City Holdings Ltd, on behalf of Dunedin City Council and supplies electricity to more than 88,000 homes, farms and businesses in Dunedin, Central Otago and Queenstown Lakes.
Mr Fletcher said there had been a "legacy period of under-investment'' in the power company's assets and prices would need to increase under the plan.
"We do have backlog, and we have to catch up with that backlog.''
However, the Commerce Commission would have to assess and approve changes in pricing, and there could be no change in the price consumers were paying until 2020.
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So the company under invests , company increases profit , directors get fees and bonuses , council gets dividends and electricity users get a price increase to make up for the money that has been extracted instead of invested in infrastructure.
Lynden, I agree, it's appalling. I really hope the Commerce Commission ask some tough questions and don't give them half of the increase they're asking for, on the basis that they've already taken the money from consumers. There simply has to be some accountability!