26 January - First-ever Electricity Authority prosecution settled
The Electricity Authority has reached an out-of-court settlement with the OtagoNet Joint Venture (OtagoNet).
The Authority prosecuted OtagoNet under section 105(4)(a) of the Electricity Industry Act 2010, alleging that it did not resume the supply of electricity to a consumer as soon as was reasonable in the circumstances. This was the first time the Authority has launched a criminal prosecution.
Chief Executive Carl Hansen said, “It is important consumers know we will take action to protect and enforce their rights under the Act if required. We are pleased that OtagoNet has now admitted it breached the Act and that we have reached a settlement that is satisfactory to all parties.”
The Authority and OtagoNet agreed to settle the prosecution out of court, provided OtagoNet admitted its breach of the Act, apologised, paid reparation to the consumer affected, contributed to the Authority’s legal costs, and made a donation to several charities in place of a penalty under the Act.
Severe flooding and snow storms in Otago in June 2013 caused several electricity lines on OtagoNet’s network to fail, including a section of line known as the Mt Allan spur line which served a single consumer. The Authority commenced the prosecution after OtagoNet refused to reconnect the Mt Allan spur line following the consumer’s complaint.
For more information:
Nicky Chilton
Communications Manager
021 321 831
Elizabeth Coady
Communications Adviser
021 073 7777