A Dunedin Council-owned electricity provider has bowed to public pressure over prices

Aurora Energy sought Commerce Commission permission to hike prices - so it could invest 520 million dollars in its deteriorating Dunedin networks.

It proposed a 20 to 30 dollar monthly increase for most of its 90 thousand customers.

Central Otago and Queenstown customers saw the hike as unfair..

Aurora's now changed its tune - so costs reflect the maintenance and administrative costs of supplying each region.

That will see a modest reduction in Queenstown and Central Otago.

The first price change will take effect in April