Orion has defended its approach to setting chief executive Nigel Barbour’s $905,000 remuneration package, following criticism from Christchurch Mayor Phil Mauger and the Taxpayers’ Union as Canterbury households face higher electricity bills.

Orion board chair Paul Munro said in a statement to chrislynchmedia.com executive pay reflected the responsibilities and complexity of the role, while dividends paid to its council shareholders ultimately benefited ratepayers.

His response follows a draft Commerce Commission decision proposing approximately $1.3 billion in network expenditure, with the average customer’s monthly power bill projected to increase by $21 by 2032.

Taxpayers’ Union representative Tory Relf described Barbour’s remuneration as excessive.

“Phil Mauger is absolutely right. A $905,000 pay packet for running a monopoly is ludicrous.”

Barbour’s remuneration increased from $880,000 to $905,000 over the past financial year, a rise of $25,000, or approximately 2.8 percent.

“Orion’s customers cannot take their business elsewhere. They are stuck paying the bill, while the boss pockets another $25,000 increase. Almost 3,600 households’ proposed annual bill increases would be needed just to cover his pay,” Relf said.

“A captive market should demand the tightest possible cost control. Instead, households are being forced to tighten their belts while the board loosens the purse strings for the chief executive.”

Munro said the board took its responsibilities around executive remuneration, affordability and prudent financial management seriously.

“Chief executive remuneration is set by the Board through an established process that considers the responsibilities and complexity of the role, as well as relevant market information to ensure Orion can attract and retain the capability and leadership required for the role.”

The statement did not identify the market comparisons or performance measures supporting the latest increase, or say whether the board had considered a pay freeze.

Mauger previously told chrislynchmedia.com he was not questioning Barbour’s performance directly, but believed boards should consider whether further increases were appropriate when remuneration was already substantial.

“There must come a time where you say, ‘Righto, this year no increase.’”

The mayor also questioned whether Orion should retain more of its profits to help fund infrastructure investment.

Orion reported an after-tax profit of $35.4 million for the financial year ending March 2026 and paid $30 million in dividends to its council shareholders, up from $25 million the previous year.

Christchurch City Council owns 89.275 percent of Orion through Christchurch City Holdings Limited. Selwyn District Council owns the remaining 10.725 percent.

Relf said the councils’ expectations also warranted scrutiny.

“The council should demand answers, but it must also examine its own dividend demands. Electricity bills should fund an efficient, reliable network, not an executive gravy train or a council spending habit.”

Munro said the payments returned value to the community.

“Our council shareholders own Orion on behalf of the community, so dividends provide a return on that community ownership and ultimately benefit ratepayers.”

His statement did not directly address whether retaining more earnings could reduce the proposed increases for electricity consumers.

On network spending, Munro acknowledged the financial pressure facing households.

“We recognise the timing of the draft decision is challenging for our community during a period of continued cost-of-living pressures.”

He said Orion welcomed the Commerce Commission’s scrutiny and needed to accelerate network renewal compared with the past decade, as electricity demand and connection requirements changed.

Munro also emphasised that the proposed $1.3 billion represented total expenditure under the draft customised price-quality path, known as a CPP.

“It’s important to clarify that the proposed $1.3 billion is not $1.3 billion of additional expenditure. It is the total expenditure proposed under the draft CPP. The vast majority of that expenditure is what Orion would otherwise receive under the Commerce Commission’s default price quality path.”

“Orion remains focused on delivering that investment efficiently and keeping the impact on customers as low as practicable.”

The Commerce Commission’s draft proposal is approximately $200 million below the expenditure Orion originally sought. It reduces the projected monthly bill increase by 2032 from around $33 to $21.

The decision remains a draft, with public submissions open until 8 December and a final decision expected in March 2027.

Any approved changes to Orion’s regulated revenue would begin taking effect from 1 April 2027.