The island’s power supply - and the 360,000 litres of diesel used to generate electricity - was the topic of discussion at the council’s meeting held in Te Anau yesterday.
Cr Rob Scott thought it was time the Government put its money where its mouth was when it came to the power supply and emissions issue.
Council commercial infrastructure manager Stuart O’Neill said the council was looking to minimise diesel use altogether.
Solar and wind generation were options, but supplementary diesel generation would also be needed, he said.
Investigations into generation from renewable energy sources had been ongoing since 2008.
To date a viable and affordable alternative had not been identified.
The council had also been seeking help from central Government to resolve long-term issues around the provision of affordable and sustainable energy on Stewart Island for many years.
To date up to 19 reports had been produced for the Government about the supply, but nothing had changed.
Councillors ratified a recommendation from the Stewart Island-Rakiura Community Board to increase the Stewart Island Electricity Supply Authority’s (Siesa) rate per unit and night rate by 5% to offset the blooming debt being created from rising fuel prices.
The price increase would only offer a $28,000 reprieve from the rising costs.
Without the extra funding, it is projected the island’s current fuel budget for 2022-23 will run out in November 2022 and the $1.8 million reserve will be exhausted by May 2024.
This would leave the island without any means to fund further diesel generation of electricity.
Mr O’Neill said this could severely affect power supply to residents and businesses.
Cr Ford was concerned if the supply authority kept increasing power costs, it would become unaffordable and force customers away from the market, leaving the council carrying a debt-ridden power supply business without customers.
The council had engaged consultants Morrison Low to develop a strategic and economic business case to explore long-term power supply options, which would be discussed with Stewart Island consumers and local stakeholders.
Staff were also engaging with the New Zealand Infrastructure Commission Te Waihanga, which was now advocating for Stewart Island power consumers by providing assistance in developing the strategic guidance for an alternative power source.
The business case was expected to be released for consultation early in 2023.
There was a genuine commitment to work closely with the Stewart Island community to achieve a positive outcome, Mr O’Neill said.
Cr Ford said while he had retired as a councillor, he would continue to campaign for a suitable outcome for the island’s power supply.
- By Toni McDonald
