The Electricity Authority should completely review its transmission pricing methodology instead of only focusing on reviewing its flawed cost benefit analysis, says Entrust Chairman, William Cairns. 

In response to the Electricity Authority announcement this morning that there were further errors in the cost benefit analysis which would require a rework ahead of a final decision in 2018, Mr Cairns said while it was pleasing the decision meant that Aucklanders wouldn’t be paying an additional $60 million in transmission pricing costs anytime soon, it was also frustrating that the Authority was still ignoring wider concerns from the industry. 

“Entrust along with others in the industry have been raising concerns about the Electricity Authority proposals for a long time which have largely been ignored. 

“We believe the Authority should use this break to fully review the numerous expert reports that have been critical about the proposed TPM and fully engage with the industry and then listen to the feedback that is provided,” he said. 

“International experts asked to comment on the Authority’s proposals have consistently and categorically warned the Authority there is no efficiency benefit to be gained from re-pricing sunk assets,” he said. 

Mr Cairns said the delay was a win for the people of Auckland who had taken the time to submit on the issue and were supportive of Entrust’s campaign to push back on a 33 percent increase in Auckland’s transmission grid charges. 

“While only time will tell if the Authority still try to push through a large price increase for Aucklanders, in the short term we have a delay which means Aucklanders won’t pay an additional $60-78 million in transmission prices anytime soon. 

“We would like to say a big thank you to all those Aucklanders who have joined us in pushing back on the Authority’s proposal by submitting submissions and joining us on Facebook,” he said.