ALPE

Alpine Energy Ltd

12.9%

Alpine Energy is transitioning to a more cost reflective distribution price model in accordance with the distribution price guidelines from the Electricity Authority. As a result, the variable charges (per kWh) have been reduced and fixed daily prices (per ICP) have increased to better reflect the fixed cost nature of distribution and transmission systems. However, we have not fundamentally changed the methodologies or pricing structures from the previous years and have not introduced any new consumer groups or pricing categories.

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BUEL

Buller Electricity Ltd

3.4%%

Not advised.

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CHBP

Centralines

Not advised

Centralines have made the following changes of note for the coming year:

An increase in residential prices of, on average, 7% in line with the recent and current rate of inflation.

The fixed daily price for the LFC compliant residential price categories, CH1 and CH1T, will increase from 30c per day to 45c per day in line with guidance established for removal of the LFC regulations.

The fixed daily price for standard residential connections, CH2R and CH2T, will increase from $1.40 to $1.50.

General connections, CH2, will see an increase, on average of 10%.

Commercial connections will see increases of between 2.5% and 5% depending on the category and the nature of their consumption patterns.

Apart from the price changes there are no policy changes of note.

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CKHK

Wellington Electricity Lines Ltd

-6%

CKHK Wellington Electricity Lines Ltd -6% The application of the Electricity Authority’s new methodology for calculating and allocating Transmission costs and the second year of the governments phasing out of low fixed charge tariffs regulation has decreased lines charge for residential consumers by an average of 8% for low energy users and 13% for standard users. Commercial customers prices will increase on average by 10% for some price categories and decrease for others. Prices overall have decreased by 6%.

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COUP

Counties Power Ltd

7%

Counties Energy is increasing lines prices by 7% on average from 1 April 2023. This figure is an average increase because principally it has been applied to the fixed price component of Counties Power line charges. This means that customers with lower-than-average consumption will see a higher increase and, similarly, high-volume customers a lower increase. For the low fixed residential tariff group, the daily fixed charge was increased to the new regulatory cap of 45 cents per day. The increase in line prices has mostly been driven by a surge in material and contractor costs across the business far higher than the official annual CPI of 7.2%. Other costs have also increased including labour, IT systems and Transpower transmission and connection charges.

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DUNE

Aurora Energy

14.8%

Aurora Energy has set prices based on the Commerce Commission’s Aurora Energy Customised Price-Quality Path Determination 2021 (the CPP Determination) that was published on 31 March 2021. The CPP Determination allows Aurora Energy to increase total revenue by 15.8% for the year commencing 1 April 2023. The revenue change comprises the provisional 10% cap on total revenue, a 4.4% increase for the difference between forecast and actual inflation, and a 1.4% increase for the difference between forecast and actual transmission costs. The calculation of prices for the year commencing 1 April 2023 includes the industry-wide changes to the Low-User Fixed Charges (LFC) and Transpower’s new Transmission Pricing Methodology (TPM) as well as some structural changes, as outlined on the following page. These changes are fully detailed in an updated version of Aurora Energy’s Pricing Methodology that will be published by 2 March 2023.

Overall, these changes result in an average revenue increase per customer connection of 14.8%. Accordingly, under the terms of the Default Distributor Agreement1, Aurora Energy gives notice of the following changes, to apply from 1 April 2023:

Overall, these changes result in an average increase Distribution Service charges of 12.0%.  Accordingly, under the terms of the Default Distributor Agreement, I give notice of the following changes, to apply from 1 April 2022:

·An average revenue increase per customer connection of 12.6% for the 56,500 customers in the Dunedin pricing area

·An average revenue increase per customer connection of 21.4% for the 23,100 customers in the Central Otago / Wānaka pricing area; and

·An average revenue increase per customer connection of 10.8% for the 14,800 customers in the Queenstown pricing area, including the Frankton sub area

Whilst the average price increase by GXP pricing area is as stated above, there will be variations in the line charges change noted by load groups and individual ICPs.

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EASH

Electricity Ashburton

11.2%

EA Networks prices are increasing. While its own costs are rising in the current high cost-inflation environment, it is also seeing a particularly large increase in its transmission charges, as Transpower responds to new regulations put in place by the Electricity Authority. In total, the transmission charges EA Networks pays are increasing from $7.9m to $10.3m, accounting for more than half of the increase.

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EAST

Eastland Network Ltd

-1.3%

Eastland Network’s charges will reduce overall by 1.3% with varying movements across the pricing categories. Transmission charges have come down as a result of the new TPM (Transmission Pricing Methodology) by 26%, and will be recovered solely via fixed charges. Distribution charges are increasing 4.9% due to a regulated CPI revenue increase and movements in regulatory balances.

Due to the Low Fixed Charge regulation phase out, low user domestic customers will be seeing a 50% increase in their daily fixed charges, but Eastland are reducing variable charges to help mitigate the price shock. As a result, two thirds of domestic customers will see distribution prices reduce next year. An average domestic low user customer will see their bill charges remain mostly unchanged despite the fixed charge increase. Domestic standard customers will see their charges go down 3%.

An updated cost of service allocation methodology and changes to allocation of transmission cost via fixed charges resulted in mixed rate movements for commercial and industrial customers. Despite price shock management being one of the main considerations, there are a few commercial customers with low consumption that will see their charges go up significantly, while others with higher consumption will see an inverse impact. This is however driven by the Electricity Authority guidance on transmission charge allocation methodology and cost reflectivity based on the new cost of service model.

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ELEC

Electra Limited

9%

For 2023, the key contributors to the increase in Electra charges have been:

Regulatory: in 2022 the Electricity Authority (EA) conducted a review of electricity pricing, consulting with market participants and the way certain costs are allocated or charged to customers. There were two key decisions made as a result:

• Low User charges are to be phased out
• Loss and Constraint Excess (LCEs) which has led an increase in cost for Electra of over $1.2 million per year. This is a pass-through cost

Transmission: Electra’s transmission costs have increased by approximately 11% or $1.5 million per year. This is a pass-through cost.

Plant, equipment & materials: Electra are committed to investing $138m into the network over the next 10 years to maintain and meet the growing power needs of the region. Electra’s costs have also been significantly impacted by inflation.

To cover these increased costs, Electra has had to adjust its pricing and pass the cost increases on to electricity retailers who operate on its network. Electra’s own component of its charges have increased by 10% this year. Electra customers will see an average increase of 16%. The average increase for Electra’s Simply Energy customers is 9%.

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ELIN

Electricity Invercargill

-0.9%

In line with the Default Price Path (DPP) Electricity Invercargill Limited [EIL] is to decrease its line charges for the residential and general customer groups by an average of 0.9%. The overall decrease incorporates a 20% increase in Transmission costs. Whilst the average price decrease is as stated above, there will be variations in the line charges change noted by load groups. This year in line with pricing strategy EIL are passing through price decreases through lowering the variable charges to the residential and general customers, except for the residential low user fixed charge which is increasing by 15 cents per day in line with the permitted regulated phase out. In the case of the individually assessed line charge customers, their consumption and demand profiles have been updated and the new Transpower pricing methodology has been incorporated. This has resulted in some increases and decreases to customers depending on their load profile and their demand levels co-incident with Transpower’s new peak assessment periods.

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HAWK

Unison Networks

1%

There are a number of changes to Unison pricing that are important to note.

A new price category, NDA, has been created to encompass all the General connections that have occupied the NDL and NDH price categories. The connection limit for the NDA category will remain as it was for the NDL and NDH but there will be no need to separate connections based on levels of consumption.

The fixed daily price for the LFC compliant categories, M11 and TLU, will increase from 30c per day to 45c per day in line with the guidance established for removal of LFC regulations.

The fixed daily price for Standard connections, M12 and THU, will increase from $1.15 to $1.22 per day.

Temporary price categories, T1P and T3P, that were closed for new connections from 1 April 2022, will be closed completely with those few remaining connection in these categories being moved to the appropriate, NDA or Commercial category.

Overall pricing in the residential categories has increased by approximately 1% in both Hawkes Bay and the Rotorua/Taupo regions. The introduction of the amalgamated NDA category will result in some varied price changes across connections with the level of consumption in this group being very diverse.

The Commercial price categories will see a small increase in MC1 and MC2 pricing, from 0% to 2% for most connections, while the larger connections will in the main stay the same or have small decreases.

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HEDL

Horizon Energy Distribution Ltd

7.9%

With effect from 1 April 2023, Horizon Networks will increase line revenue attributed to consumers, by 7.9%. This is a weighted average price change across the various consumer groups.

• Low User Domestic – 5.1%
• Standard – 2.4%
• Capacity – 1.2%
• Maximum Demand – 11.4%
• Overall 7.9%

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LINE

The Lines Company

-2.6%

No change to pricing structure, pricing category codes or ToU times.

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LLNW

Lakeland Network

5.0%

This year there will be a price increase of an average 5% for the residential and general customer groups from 1 April 2023. Whilst the average price increase is as stated above, there will be variations in the line charges change noted by load groups. The general customer groups have had their individual control period demand levels reassessed. Individual line charge customers have had their individual reassessment of consumption and demand levels completed and the new Transpower pricing methodology allocations incorporated. This has resulted in some increases and decreases to customers depending on their load profile and their demand levels co-incident with Transpower’s new peak assessment periods.

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MARL

Marlborough Lines Limited

Not advised

Marlborough Lines Limited's [MLL’s] price changes from 1 April 2023 include:

• A small increase for most consumer groups to cover increases in MLL’s costs (note that increases are generally to the fixed price components).
• Increases for remote consumers relative to non-remote consumers. Connections in remote areas cost significantly more to maintain a supply to, higher prices reflect and signal the cost of supplying these connections.
• Increases in the fixed daily charge for Residential Low Fixed Charge consumers from 30c/day to 45c/day consistent with the Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004.

Any consumer who owns (or purchases) an Electric Vehicle (EV) may like to connect their EV charging point to MLL’s controllable tariff (12 or 16 in this price schedule). MLL charges approximately 3c less per kWh of energy under the controllable tariff. For further information, please contact MLL or your local electrician.

For an ‘average’ residential consumer (DL, DS15) who consumes 8,000kWh per annum, the price increase (post-discount) will be approximately 12 cents per day (4.3%), excluding GST.

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MPOW

Mainpower New Zealand Ltd

Not advised

Overall an average residential customer (using 8,000 units per annum) will experience an increase in distribution charges of 11.5%.

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NELS

Nelson Electricity

-3.2%

The pricing change impact varies depending on load group due to the Low Fixed Charge regulation changes and allocations due to load profiles. Overall the pricing results in a 3.2% decrease.

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NPOW

NorthPower Limited

Not advised

Overall level of price changes not advised.

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ORON

Orion New Zealand Ltd

-0.5%

As an overall summary, this update reflects an inflation-based allowance within Orion network's price path which is more than offset by additional revenue that we expect to receive from growth in chargeable quantities, transmission charge reductions that we are passing on, and a regulatory adjustment relating to FY22 which is a result of actual revenue being less than actual allowable revenue.

Combined with other minor variations in cost allowances, the overall average movement is a 0.5% price reduction. Within the overall average price reduction of 0.5%, each category has a different relative exposure to the costs and allowances that are changing. As a result, the price movement for each category varies. For our main connection categories the average delivery price movements are:

• Streetlighting connections - average price movement of -1.8%
• General connections - average price movement of -0.6%
• Irrigation connections - average price movement of 4.0%
• Major customer connections - average price movement of -2.1%

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OTPO

OtagoNet Joint Venture

2%

In line with the Default Price Path (DPP) OJV is to increase its line charges for all it’s customers by an average of 2.02%. The new prices also include a decrease in Transmission costs of 12.1%. Standard residential and general customer group fixed charges increase by 7.7% with no change to the variable price. Low user customers have a 15 cent per day increase in their daily fixed charge and a 2.82% decrease to the shoulder variable price. In the case of the individually assessed line charge customers, their consumption and demand profiles have been updated and the new Transpower pricing methodology allocations incorporated. This has resulted in some increases and decreases to line charges depending on load profile.

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POCO

Powerco Ltd

7.3%

The Pricing Policy contains the prices that apply from 1 April 2023 to 31 March 2024. These reflect Powerco’s overall network revenue requirements (comprising distribution, transmission, pass-through costs and other recoverable costs) and result in a price increase of 7.3% compared to last year.  However, as shown below, the impact varies by region and consumer group (eg the increase for Mass Market is 5.8%, with Eastern being 2.7% and Western 8.3%).

Eastern

• Mass Market - 2.7%
• Commercial - 5.6%
• Industrial - 14.9%
• Overall - 5.6%

Western

• Mass Market - 8.3%
• Commercial - 4.9%
• Industrial - 14.2%
• Overall - 9.0%

Overall

• Mass Market - 5.8%
• Commercial - 5.4%
• Industrial - 14.6%
• Overall - 7.3%

Transmission, and ‘Pass Through and Recoverable’ costs have decreased, mainly driven by the new Transmission Pricing Methodology that Transpower will operate under from 1 April 2023. Applying the new methodology results in a one-off variation to the allocation of costs across regions and consumer groups compared to current prices.

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SCAN

Scanpower Ltd

9%

• General inflationary pressures, in particular in the areas of wage, fuel, and material costs.
• Costs associated with new statutory and regulatory requirements.
• Preparing our network for the impacts of decarbonisation and the electrification of road transport.

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TASM

Network Tasman

1.7%

The price changes have been made in accordance with the provisions of the 2021-2025 Default Price-Path established by the Commerce Commission. The overall change in Top Energy prices is 0% before the posted discount. This consists of 7% decrease in distribution charges and an 80% increase in passthrough and recoverable charges. The posted discount has decreased from a maximum of $250 (Including GST) to $200 (Including GST) for mass market customers. Larger customers discount has also been reduced by the same proportion. Including the reduction in discount, prices have increased 3.4%. The criteria for eligibility for the discount remain unchanged from the current 2022 year. This year Top Energy are increasing fixed charges due to the new Transmission Pricing Methodology in line with guidance from the Electricity Authority. This will be phased in over the next couple of years. For Low User Residential Customers the daily charge will increase 15c/day to 45c/day as permitted under the Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Amendment Regulations 2021. For Standard Residential the daily charge will also increase 15c/day to 150c/day and General Commercial will increase by 40c/day to 190c/day. The overall price change has then been achieved primarily by decreasing most variable components of the network charges.

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TOPE

Top Energy Ltd

3.4%

The price changes have been made in accordance with the provisions of the 2021-2025 Default Price-Path established by the Commerce Commission. The overall change in Top Energy prices is 0% before the posted discount. This consists of 7% decrease in distribution charges and an 80% increase in passthrough and recoverable charges. The posted discount has decreased from a maximum of $250 (Including GST) to $200 (Including GST) for mass market customers. Larger customers discount has also been reduced by the same proportion. Including the reduction in discount, prices have increased 3.4%. The criteria for eligibility for the discount remain unchanged from the current 2022 year. This year Top Energy are increasing fixed charges due to the new Transmission Pricing Methodology in line with guidance from the Electricity Authority. This will be phased in over the next couple of years. For Low User Residential Customers the daily charge will increase 15c/day to 45c/day as permitted under the Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Amendment Regulations 2021. For Standard Residential the daily charge will also increase 15c/day to 150c/day and General Commercial will increase by 40c/day to 190c/day. The overall price change has then been achieved primarily by decreasing most variable components of the network charges.

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TPCO

The Power Company Ltd

3.4%

The Power Company Limited [TPCL] Board of Directors has determined that there will be an increase to line prices effective from 1 April 2023. The overall increase in line charges is 3.4% for residential and general customers; this incorporates a decrease in Transmission costs. Whilst the average price increase is as stated above, there will be variations in the line charges change noted by load groups. This year in line with pricing strategy TPCL are passing through price increases mainly through the fixed charges and the night variable period. The TPCL discount will still be discounted off line charges as an annual amount in September and in line with the discount methodology as in previous years. In the case of the individually assessed line charge customers, their consumption and demand profiles have been updated and the new Transpower pricing methodology has been incorporated. This has resulted in some increases and decreases to line charges depending on load profile.

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VECT & UNET

Vector Networks

5.8%

Vector is increasing its combined Distribution and Transmission charges this year by 5.8% from 1 April 2023. This applies to all customers on its network and is an estimated weighted average made up of the following:

• Vector costs (3.4%)
• Pass-through costs (0.6%)
• Quantity forecasts

Transmission charges

Vector has split Transmission charges from its Lines charges. This means, rather than being bundled with its other charges, from 1 April 2023, Transmission Charges will appear as a separate line item on your bill.

Changes in how Vector calculates Transmission costs will also impact how we pass these on.

What’s happening

From 1 April 2023, Vector will use a GXP pricing approach for its Transmission charges. This involves charging retailers a fixed monthly fee that is made up of individual fixed fees for each Grid Exit Point on its network.

To calculate these fees, Vector looked at how much electricity was used by all the ICPs connected to each GXP for the year to September 2022. Then, it identified which retailer was responsible for each ICP as of 31 December 2022 and divided the fee between retailers based on the share of electricity used by each retailer’s customers.

What this means for you

Retailers can decide how to charge network fees to customers. We pass them on at cost while trying to be as fair as possible. Rather than passing on a fixed GXP fee, we’ve decided to distribute Vector’s monthly Transmission fee evenly to all our customers.

While Vector’s fee is based on historical data, we’ll use forecasted demand to apportion it to customers from 1 April 2023 using a fixed rate of $0.0221/kWh.

We’ve calculated this using the annual Transmission charge Vector has allocated to us and divided it by the forecasted electricity consumption for our customers from 1 April 2023 to 31 March 2024. This enables us to create a single $/kWh value.

The data Vector used to calculate retailer’s fees is over six months old. With customer switching commonplace, we feel that applying a fee based on forecasted demand, and aligned to actual usage, is a better approach. It will allow us to consider the net effect of customer switching and fluctuating consumption across our base over the year, limit over and under-charging, allow for recalculations and enable us to carry out a ‘wash-up’ at the end of the year if there are any imbalances.

None of this is possible with a fixed monthly fee.

While our methodology is designed to minimise wash-ups, we’ll contact customers who need to pay more or receive a credit shortly after the pricing period ends in March 2024.

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WAIK

WEL Networks

4.39%

Overall level of price change not advised. There have been no structural changes. Fixed daily charges for Low User price categories (1153, 1153C) have increased, as permitted by the phase-out of LFC regulations. Standard Residential fixed charges (1154, 1154C) have also increased. To account for the increased fixed charges, the overall variable kWh charges for residential price categories (1153, 1153C, 1154, and 1154C) have decrease to balance the pivot point between the low and standard categories at 8,000 kWh p.a. Fixed daily charges for General price categories (1200, 1200C) have increased. Variable kWh charges have increased slightly. Nominated Capacity and Excess Demand charges for Large Customer price categories (1360, 1354, 1357) have increased. All other Large Customer pricing remains unchanged. Pricing for Streetlighting and Unmetered connections have increased slightly.

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WAIP

Waipa Networks Ltd

Not advised

Overall level of price changes not advised.

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WATA

Network Waitaki

9.8%

To ensure Network Waitaki can continue to provide a safe and reliable supply of electricity to customers, they have adjusted pricing so that the business remains sustainable over the long term and allow them to invest in the future of the network. As a result of this adjustment, lines charges will increase 5.7% on average across all Network Waitaki customers.

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WPOW

Westpower Ltd

4.0%

April 2023 pricing incorporates the changes required under Transpower’s new TPM pricing methodology.

Note Category C4F will be discontinued, and any Consumers on that Tariff are to be moved to Category C3F effective from 1 April 2023.

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