Power board news

Ruapehu Bulletin, Volume 10, Issue 479, 30 March 1993, Page 11

Power board news

Power disconnections may cost more Disconnections for non-payment made by King Country Energy have been well above the previous year's levels since August and show no sign of abating. The March board meeting was told the average number of disconnections per month has risen from about 47 for the past two years to around 55 on average for the current year. February's total was 81 - 42 in Taumarunui, 15 in Turangi and 14 in Ohakune. Having power restored

after it has been cut off for non-payment costs $50 - a figure set by regulation from Wellington, but with deregulation of the electricity industry now only days away, this is expected to change. Secretary treasurer Norm Annand said power companies will be able to charge for disconnections as well as reconnections and the amount will not be fixed. Power company insurance up King Country Energy 's insurance bill is about to double - thanks to energy sector reforms

and the Resource Management Act. The board currently pays around $65,000 for a variety of policies but faces a bill of more than $112,000 for future cover. The extra cost has not come from a huge leap in premiums for traditional policies, but from the need for new types of insurance cover to ensure the new energy company can meet any claims that could arise from its new style of operations. Cover is now jieeded for directors and officers liability, trustees liability and environmental impairment.