On Wednesday, councillors voted unanimously to approve a $0.04/kWh increase which will push the price to $0.93/kWh — the second such bump this year.
The change is the result of high diesel prices which have made it more expensive to generate electricity, although work is under way to build a solar farm on the island.
Tree clearing work for the solar farm was costing about $850 a day in diesel for the woodchipper alone, he said.
“So the sooner we can get solar power . . . the happier the island will be.”
Mayor Rob Scott said the decision to increase the price was made “reluctantly” but there was no alternative.
A report prepared for the meeting said the price of fuel had fluctuated a lot in the last three months, with an expectation that future purchases would challenge budgets.
“It is assumed that the increased fuel prices will remain high for some time,” the report said.
The $0.04/kWh increase was endorsed earlier this month by the island’s community board, which rejected a recommended option of authorising the council to change power prices based on average diesel prices for the previous six months.
The government said the new solar farm for Rakiura/Stewart Island should reduce diesel consumption by up to 75% and cut the kWh price by as much as $0.35.
The solar farm is expected to be up and running some time in 2027.
Power prices on the island have jumped $0.28/kWh over the past four years, with a standard per unit price set at $0.65 in mid-2022.
• LDR is local body journalism co-funded by RNZ and NZ On Air.
