Electricity Authority pushes ahead with national grid pricing change

The Electricity Authority is standing its ground and pressing on with radical change to the way people pay for transmission of their electricity.

At stake is the cost of funding 12,000 kilometres of high voltage wires, which carry power around the country.

The annual fee for running this system is $918 million a year, or 10 percent of an average power bill.

The Electricity Authority has wanted to change this for years, saying those who benefit from the installation of new lines should pay more.

This encountered stiff opposition, because it would increase power bills for people in places like Auckland and Northland, who live far away from most electricity generating plants.

However, in a new statement, the Electricity Authority says change is essential, because the current system is unsustainable.

Published in RNZ, 26th June, 2018