Orion, the power company of Christchurch is seeking permission from the Commerce Commission to increase power prices in the area in order to be able to recover costs to rebuild costs.

Orion is planning to revamp its electricity network that was severely damaged during the 2010 and 2011 earthquakes. The company is planning to install a network of high voltage underground cables, overheard lines and pylons, and new substations. The company wants the increased costs to be transferred to the customers in the region.

According to new estimates, the upgrade is estimated to cost an extra $1000 per household over the next 10 years. This results in an average rise of $8.70 a month from April next year for each household in the city.

Orion chief executive Rob Jamieson said, "As a result of our final calculations, the figure of $8.70 is slightly higher than the $8.50 communicated in our draft proposal last year."

The Commerce Commission now has 40 days to evaluate Orion's proposal seeking permission to increase the price of power. The hike does not take into account the annual inflation adjustments, which will be added additionally to the costs.