1 00:00:00,120 --> 00:00:02,560 Speaker 1: Now bad news. Unfortunately, looks like your power bill is 2 00:00:02,560 --> 00:00:04,520 Speaker 1: going to go up by one hundred and twenty dollars 3 00:00:04,559 --> 00:00:07,400 Speaker 1: a year starting April. And that's not the end of it. 4 00:00:07,720 --> 00:00:09,600 Speaker 1: And that is because the commerst Commission has now given 5 00:00:09,640 --> 00:00:12,920 Speaker 1: permission to Transpower and local lines companies to charge you more. Now, 6 00:00:13,000 --> 00:00:17,200 Speaker 1: Varra mcuare is from the Commerce Commission, Hi Vari, Hi Heather, 7 00:00:17,560 --> 00:00:19,239 Speaker 1: what are the lines companies and Transpower are going to 8 00:00:19,280 --> 00:00:19,880 Speaker 1: use the money for? 9 00:00:21,760 --> 00:00:25,639 Speaker 2: So they are experiencing on increasing costs. So, like many 10 00:00:25,680 --> 00:00:29,960 Speaker 2: businesses around New Zealand, the costs of their business has 11 00:00:30,040 --> 00:00:33,559 Speaker 2: risen over the last couple of years and they're expecting 12 00:00:33,640 --> 00:00:36,919 Speaker 2: increases and costs moving forward. So about half of the 13 00:00:37,479 --> 00:00:40,880 Speaker 2: increase relates to price increases, so the cost of inputs. 14 00:00:41,720 --> 00:00:46,720 Speaker 2: The other half is related to increasing investment and increasing expenditure, 15 00:00:47,640 --> 00:00:50,960 Speaker 2: which is really to make sure that the lines are 16 00:00:51,240 --> 00:00:55,360 Speaker 2: reliable and safe for consumers over the longer term. 17 00:00:55,480 --> 00:00:57,800 Speaker 1: Right, So are we talking about just sort of maintenance 18 00:00:57,840 --> 00:00:59,200 Speaker 1: here and there or full replacement? 19 00:01:01,360 --> 00:01:05,400 Speaker 2: So it varies. So for Transpower in particular, some of 20 00:01:05,440 --> 00:01:08,720 Speaker 2: their assets are now quite old and they need to 21 00:01:08,760 --> 00:01:13,240 Speaker 2: be replaced and some of them are less old, so 22 00:01:13,280 --> 00:01:17,800 Speaker 2: they will be maintaining those. There's also a component there 23 00:01:17,840 --> 00:01:21,360 Speaker 2: of system growth. So obviously we know that the economy 24 00:01:21,520 --> 00:01:25,360 Speaker 2: is increasingly relying on electricity as a fuel rather than 25 00:01:25,360 --> 00:01:29,240 Speaker 2: fossil fuels, and so that requires some growth in terms 26 00:01:29,280 --> 00:01:31,880 Speaker 2: of the size of those electricity networks to move it 27 00:01:31,920 --> 00:01:32,600 Speaker 2: around the country. 28 00:01:32,640 --> 00:01:34,759 Speaker 1: You're basically to be able to handle evs and stuff 29 00:01:34,800 --> 00:01:37,479 Speaker 1: like that, right, Yes, that's right. 30 00:01:37,520 --> 00:01:40,959 Speaker 2: So transportation and a bit of industrial process heat are 31 00:01:41,040 --> 00:01:42,080 Speaker 2: the main things there. 32 00:01:42,280 --> 00:01:45,440 Speaker 1: Okay, have you guys done, I mean, what you're doing 33 00:01:45,520 --> 00:01:47,480 Speaker 1: is one hundred and twenty dollars a year from April? 34 00:01:48,080 --> 00:01:50,000 Speaker 1: Is it in the five year package? It's about three 35 00:01:50,120 --> 00:01:52,480 Speaker 1: hundred and sixty dollars extra will be paying right, So 36 00:01:52,960 --> 00:01:55,280 Speaker 1: five years from now, my power bill across the year 37 00:01:55,280 --> 00:01:57,040 Speaker 1: will be three hundred and sixty dollars more than it 38 00:01:57,080 --> 00:01:57,600 Speaker 1: is right now. 39 00:01:59,040 --> 00:02:02,120 Speaker 2: Yes, that's correct, So the average increase will be three 40 00:02:02,160 --> 00:02:03,240 Speaker 2: hundred and sixty dollars. 41 00:02:03,560 --> 00:02:06,120 Speaker 1: A lot of Okay, have you done the sums on 42 00:02:06,280 --> 00:02:08,920 Speaker 1: how much more in total? Like, when you guys made 43 00:02:08,919 --> 00:02:12,440 Speaker 1: this considered this, did you consider how much in total 44 00:02:12,520 --> 00:02:15,160 Speaker 1: we'd be paying more across our electricity bill? Because it's 45 00:02:15,200 --> 00:02:16,800 Speaker 1: not just this, right, we've got the scrapping of the 46 00:02:17,160 --> 00:02:19,600 Speaker 1: low user plans that's going to put up prices for 47 00:02:19,680 --> 00:02:22,840 Speaker 1: the power companies, just charging people more shortage of gas 48 00:02:22,840 --> 00:02:25,000 Speaker 1: and stuff like that. So did you consider the full 49 00:02:25,040 --> 00:02:26,079 Speaker 1: impact on the consumer. 50 00:02:28,840 --> 00:02:31,800 Speaker 2: So we are obviously concerned about the impact on consumers, 51 00:02:31,840 --> 00:02:35,560 Speaker 2: and we recognized that price rises and if you welcome, however, 52 00:02:35,680 --> 00:02:38,360 Speaker 2: we do just focus on these two elements of the 53 00:02:38,400 --> 00:02:41,240 Speaker 2: power bill in terms of making these decisions. So we 54 00:02:41,320 --> 00:02:45,000 Speaker 2: haven't we haven't looked at the impact of those things, 55 00:02:45,040 --> 00:02:48,799 Speaker 2: and we'd really hope that in the longer term, competition 56 00:02:49,080 --> 00:02:52,160 Speaker 2: will help to keep the prices and the rest of 57 00:02:52,200 --> 00:02:55,360 Speaker 2: the market to a more reasonable level. 58 00:02:56,160 --> 00:02:58,680 Speaker 1: Vari Thank you appreciate all of that. That's Varry mcwah 59 00:02:58,720 --> 00:03:02,119 Speaker 1: who's from the COMMUS Commission. For more from Hither Duplessy 60 00:03:02,160 --> 00:03:04,960 Speaker 1: Allen Drive, listen live to News Talk Set B from 61 00:03:05,040 --> 00:03:08,600 Speaker 1: four p m. Weekdays, or follow the podcast on iHeartRadio.