Source: Radio New Zealand
Stewart Islandiers were already paying more than twice what those on the mainland pay. RNZ / Mark Papalii
Electricity prices have been hiked by almost 5 percent on Stewart Island/Rakiura due to the sharp rise of the price of fuel.
The island’s power grid is generated entirely by diesel, though there are plans for a solar farm.
The local community board has approved increasing electricity rates next month by four cents to 89 cents per kilowatt hour.
It puts further pressure on people already paying more than twice what those on the mainland pay.
Southland district councillor and Rakiura community board member Jon Spraggon said the board also approved taking $250,000 from the Stewart Island Electricity Supply Authority’s reserves to offset fuel price rises.
“This will help cover the costs for the next few months,” he said.
“The big reason for choosing four cents is that anything under a 5 percent increase, all we have to do is advertise it. If we go above a 5 percent increase at any point of time each individual user has to be contacted and it takes a lot more time to put in place.”
Residents could expect further small increases if diesel prices continued to rise, he said.
“It’s being done as a temporary measure and if suddenly something happened and the price of diesel went down then it would be taken off.”
The Southland District Council is trying to expedite https://www.rnz.co.nz/news/national/591821/officials-want-stewart-island-solar-powered-by-christmas-in-face-of-rising-diesel-costs plans for a solar farm on the island].
Southland Mayor Rob Scott earlier said the council was about to apply for consent and, under the Resource Management Act, was seeking to classify the project as emergency works to be carried out in exceptional circumstances.
The aim was to begin construction in June and eventually reduce diesel consumption for electricity by about 75 percent, he said.
A report prepared for the community board noted officials would continue to monitor diesel prices on a weekly basis.
“With no obvious end date for the conflict that has caused the rapid increase in diesel prices it is considered unlikely prices will reduce from current levels,” it said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
