Alpine to make one-off credit payment to customers
Alpine has lowered its pricing and given credits to customers, among other concessions. Photo: 123RF
The Commerce Commission has forced a South Canterbury electricity lines company to repay $16.9 million to consumers for overcharging.
The regulator warned Timaru-based Alpine Energy over an accounting mistake that saw it give the Commission incorrect information.
The Commission allowed Alpine to charge customers higher prices on the basis of the incorrect information between 2015 and 2024.
Commissioner Vhari McWha said the mistakes were not intentional, but were serious and preventable.
"We're mindful that, given electricity is an essential service, consumers may have suffered unnecessary hardship as a result of this error," McWha said.
She said Alpine lowered its pricing and had given credits to customers, put money aside for former customers and established funds to improve electricity access in the community.
"That's why, in addition to paying customers back the amount they are owed, we have secured a commitment from Alpine to spend at least $1.5m to support access to electricity in the local South Canterbury community."
Alpine was also issued with a formal warning.
The Commission said Alpine adjusted its prices from June 2024 and refunds would be delivered by crediting the accounts of current customers.
There would also be a programme to make payments to former customers, who could show they were eligible for a refund.
Alpine Energy said customers would see a one-off credit in May or June this year. The amount depended on the type and size of customer, with households receiving an average of $261.69, the equivalent of about a month's power bill.
The lines company first advised customers about the error last year, issuing an apology.
"The board acknowledges the concern and uncertainty this error has caused customers," chairperson Melissa Clark-Reynolds said.
"We accept the decision from the Commission today."
Alpine said in addition to the credit to almost 31,000 homes and small businesses, customers on three-phase connections would receive credits of $992.83, while credits for larger commercial and industrial customers would vary.
