Shock 427 percent increase in lines charge sent to High Court

6:11 pm on 7 July 2023
The Westport sign at the Buller Bridge entrance to the town.

The Westport sign at the Buller Bridge entrance to the town. Photo: Greymouth Star / Brendon McMahon

A shock 427 percent electricity charge increase imposed on Buller's community owned lines company is set for a judicial review in the High Court.

Buller Electricity Ltd director Shannon Hollis said the judicial review against both the Electricity Authority and Transpower was set down for over three days from 31 July.

"This hearing will determine the legality of Transpower's reclassification of BEL's assets."

The court action on behalf of Buller consumers had already resulted in an interim stay on would have been the 427 percent increase passed on to consumers from 1 April.

This followed final notification in December from Transpower that it would be lifting transmission charges to the district.

Hollis said the economic hardship resulting from the imposed increase was foremost of their concern, particularly when Westport was still reeling from the effects of the July 2021 flood.

The feedback from consumers was that the 427 percent increase would send some over the edge, at a time when huge increases in rates, mortgages and insurance payments were also starting to bite.

That was on top of the ongoing uncertainty for some Westport residents who were yet to learn the fate of their homes in the wake of the flooding.

"Generally, consumers are concerned across the board."

Buller Electricity was the only lines company in the country where the Electricity Authority and Transpower "have exercised this discretion".

"At the end of the day they issued their decision then we had to start the ball rolling with the court process... we had to go into bat straight away."

In February an interim arrangement was reached pausing any increases arising from Transpower's reclassification of Buller Electricity assets until the judicial review application was resolved.

"As a result (Buller Electricity) reduced the price increases previously notified to electricity retailers and asked that they adjust their pricing in line with this."

- Local Democracy Reporting is Public Interest Journalism funded through NZ On Air

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