LETTERS TO THE EDITOR
On behalf of the Hawke’s Bay Power Consumers Trust, I wish to respond to the letter by Mr Ewing Robertson, of which two other members of our community — J T Moynihan and A G Parker — have expressed similar sentiment.
The trust takes its role in
monitoring Unison very
seriously and, being a
community-owned business
providing essential services,
both the trust and Unison
welcome public scrutiny.
However, there have been a
number of incorrect claims
made in these recent letters
that need to be addressed.
For example, Mr Robertson
claims the fixed daily charge
on his power bill of $2.13 is
solely the lines charge.
In fact, Unison’s
contribution to the fixed
component is $1.15 per day.
The difference relates to
retailers’ costs. Unison also
charges variable charges and
complete disclosure of this
information is available on
Unison’s website, and
published annually in Hawke’s
Bay Today.
We encourage customers
seeking clarification of their
charges to talk to Unison or
their selected retailer.
Similar to other
infrastructure businesses,
Unison does indeed carry debt.
However, contrary to your
correspondents’ claims, this
debt, which was raised to
purchase the Taupo and
Rotorua networks, as well as
other investments made to
grow the business, is not
“harming Hawke’s Bay
consumers”.
In the 2013-14 financial year,
for example, these
investments have contributed
$23 million (before interest and
tax) to Unison’s group profit,
which more than covers
Unison’s interest costs,
demonstrating these
investments enhance the
group return to the benefit of
consumers, and not to the
detriment.
But the benefits are not just
financial.
With additional scale,
Unison has been able to
develop a smart grid, which
not only provides improved
power quality, but also longterm
cost savings to the
business—and therefore to
consumers.
Your correspondents
compare Unison to the likes of
water or sewerage schemes
and query why Unison’s
charges are higher.
These are not reasonable
comparisons to make with the
conveyance of electricity,
given the complexity, the cost
of the assets and the safety
requirements of managing
such a network.
It is important for all
consumers to know that, in
addition to oversight from the
trust, Unison is a highly
regulated company. Its overall
price changes are within the
permitted allowances set by
the Commerce Commission
and reflect the investments
Unison has made in its
network to improve the power
quality experienced by its
customers, and to ensure it is
sustainable and resilient for
the future.
John Newland
Chairman, Hawke’s Bay
Power Consumers Trust