ALPE

Alpine Energy Ltd

10%

Alpine Energy are continuing with a cost reflective distribution price model in accordance with the pricing principles and guidelines from the Electricity Authority. The fixed price focus introduced in 2023/24 remains, with income from variable prices reduced to 20% (on average) of Alpine Energy target revenue. Prior to 2023/24 variable prices were approximately 50% of their target revenue. This means that Alpine Energy fixed price component remains at 80% (on average). This year the differences in prices for controlled versus uncontrolled loads (pricing categories with and without “U” in the code), and the differences in prices for low cost versus high cost areas (LCA versus HCA), have been slightly adjusted. These adjustments create consistency for cost reflective principles across all consumer groups.

Prices are based on metering at the grid exit points supplying the network with a reduction for the declared network loss level to emulate usage metered on site. The additional distribution price of $0.0946/kWh for day and night usage in the LOWHCA, $0.0848/kWh for day and night usage in the LOWLCA load groups, $0.0970/kWh for day and night usage in the LOWUHCA, and $0.0872/kWh for day and night usage in the LOWULCA load groups is priced based on usage advised by electricity retailers including Simply Energy. The additional variable transmission price of $0.0024/kWh for day and night usage for sites in the LOWUHCA and LOWULCA load groups is a special price for the provision of electric water heating that cannot be controlled by Alpine Energy via a ripple relay and is priced based on usage advised by electricity retailers including Simply Energy.

The 2024/25 transmission pricing determination has had a minor impact on the transmission prices Alpine Energy are passing through for 2024/25. Transmission prices increased by 2% year on year.  Accounting for inflationary adjustments and prior year washups, Alpine Energy target revenue has increased by 10% from 2023/24. This increase is compliant with price-setting regulations under the Default Price Quality Path Determination 2020

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BUEL

Buller Electricity Ltd

28.8%

Buller Electricity Limited [BEL] has introduced 3 new Price Categories for the 2024/25 financial year; the reason for their introduction is to reduce the impact of transmission charge increases on Residential consumers. The overall average change in delivery prices for the 2024/25 financial year are summarised below.

• Residential Standard User [RSU] - 12.6%
• Residential Low User [RLU] - 12.2%
• General Connection - Small [G15] - 28%
• General Connection - Small Discretionary [G15SD] - 50%
• Streetlights [STL] - 50%
• Medium Commercial [G69] - 28%
• General Connection - Medium Discretionary [G69MD] - 50%
• Dairy Farm [DFM] - 28%
• Large Commercial [GHH] - 28%
• General Connection - Large Discretionary [GHHLD] - 50%
• Large Industrial [STK] - 65%

The overall average change in delivery prices for Residential is 12.4% and the overall average change in delivery prices for non-residential is 41.1%. It is noted that whether an individual consumer will experience an increase/decrease in their Line Charges from year to year depends on the Delivery Prices they are subject to in combination with their electricity usage patterns.

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CHBP

Centralines

6.1%

Centralines have increased the overall revenue from delivery prices by 6.1% compared to the current pricing year. This is a figure that is representative of the level of inflation. The increase in the fixed daily charge for LFC compliant pricing plans, CH1 and CH1T, from 45c to 60c per day is in line with the phase-out of the regulations. Residential prices on average will increase by 7% with variable rates decreasing slightly in compensation for the increase in fixed charges. As with previous years the nature of increasing fixed charges shows a larger price increase for connections using lower levels of consumption. The increased revenue requirement has been relatively evenly spread over all price categories however with the increased emphasis we have placed on fixed charges and the subsequent reduction in variable rates there will be some connections that will be more affected than others.

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CKHK

Wellington Electricity Lines Ltd

7.3%

Prices have increased by an average of 7.3% this year (new prices apply 1 April 2024).

• The Commerce Commission sets the amount of revenue that a network can recover each year.
• Prices include an adjustment for changes in actual inflation (prices include a historical recovery of past inflation).
• This year’s prices have increased to align with the high inflation experienced nationally (national inflation was around 7% for the regulatory year ending March 2023).

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COUP

Counties Power Ltd

9.2%

Counties Energy is increasing lines prices by 9.2% on average from 1 April 2024. This figure is an average increase because principally it has been applied to the fixed price component of Counties Energy 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 their daily fixed charge is increasing to the new regulatory cap of 60 cents per day. The increase in line prices has mostly been driven by a surge in material, contractor and interest costs across the Counties Energy business as well as the need to invest in new network infrastructure to meet continued customer growth. Other costs have also increased including labour, IT systems and Transpower transmission and connection charges.

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DUNE

Aurora Energy

7.4%

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 12.23% for the year commencing 1 April 2024. The revenue change comprises the provisional 10% cap on total revenue, a 1.3% increase for the difference between forecast and actual inflation, and a 0.93% increase for the difference between forecast and actual transmission costs. These changes are fully detailed in the updated version of Aurora Energy’s Pricing Methodology that will be published in March 2024.

Overall, these changes result in an average revenue increase per customer connection of 7.4%. Accordingly, under the terms of the Default Distributor Agreement, Aurora Energy gives notice of the following changes, to apply from 1 April 2024:

• An average revenue increase per customer connection of 6.1% for the 56,200 customers in the Dunedin pricing area,
• An average revenue increase per customer connection of 9.1% for the 22,500 customers in the Central Otago / Wānaka pricing area; and
• An average revenue increase per customer connection of 8.9% for the 14,500 customers in the Queenstown pricing area, including the Frankton sub area.

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

Changes to ToU differentials

After carefully analysing the impact of price changes, Aurora have decided to introduce mild ToU differentials between peak and off-peak consumption. The ToU differential for each of the pricing areas that will be applied from 1 April 2024 are as follows:

• Dunedin - 3 cents per kWh
• Central Otago / Wanaka - 5 cents per kWh
• Queenstown (incl Frankton sub area) - 4 cents per kWh

Price discount for customers exporting during control periods

For the year commencing 1 April 2024, Aurora will be trialling a credit scheme for consumers who are able to export during winter peak periods in the Upper Clutha and Wanaka areas, and who:

• have solar panels or other distributed generation installed,
• willing to export electricity to the grid during Control Period Demand (CPD) periods; and
• are enrolled in the CPD credit scheme.

The scheme will operate by including 50% of the kWh exported during CPD periods in the calculation of average CPD kW for the year. Details of this scheme will be provided in the updated version of Aurora Energy’s Pricing Methodology that will be published in March 2024. If you believe that you fall into this category, please ask contact us at Simply Energy and we will put you in touch with Aurora who can provide more information and guidance on how to participate in the scheme.

Combining Distribution and Transmission charges on your Simply Energy invoice

Some network charges in the Aurora region have historically been displayed on Simply Energy invoices with the Distribution component on a separate line from the Transmission component. This differentiation is being removed from 1 April 2024 and these charges will be displayed as a single line on the invoice.

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EASH

Electricity Ashburton

6.8%

The main drivers for this change are increases in management costs, asset costs and transmission related costs, with a slight decrease in regulatory incentives and limits. The average price movements by category are as follows:

• General connection 8 kVA ‐6.1%
• General connection 20 kVA (covering most residential)  +6.9%
• General connection 50 kVA +6.8%
• General connection 100 kVA +9.5%
• General connection 150 kVA +3.7%
• General connection 300 kVA (new) +7.7%
• Irrigation +4.7%
• Industrial +10.1%
• Large customers +18.2%
• Streetlighting +5.4%

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EAST

Firstlight Network Ltd

9.5%

Firstlight’s charges will increase from 1 April 2024 by 9.5% with varying movements across the pricing categories. Transmission charges show a 2.8% increase, while distribution charges are increasing by 10.7% due to a CPI catch up driven wash-up in addition to the usual DPP3 CPI increase of 2%.

Due to LFC regulation phase out, low user domestic customers will be seeing a 33% increase in their daily fixed charges (increase of 15c from 45c to 60c). As a result of the higher revenue requirements and the changes in LFC regulation, two thirds of domestic customers (all LFC consumers) will see higher than average distribution prices increase, i.e. 11.4%. Standard residential customers will see an average price increase of 9.5%. Firstlight network have reviewed their LRMC calculation for the determination of peak charges and peak tariffs will as a result increase across all categories, while off-peak prices will see a small reduction.

An updated cost of service allocation methodology in 2022 is continuing to drive mixed rate movements for commercial and industrial customers.

Despite price shock management being one of the main considerations, there are some commercial customers that will see their charges go up higher than the average increase. This is however driven by the Electricity Authority pricing principles embedded in Firstlight’s cost of service model.

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ELEC

Electra Limited

Not advised

Electra Limited appreciates that the current cost of living crisis makes any increase in line charges unwelcome, and assures you that they are acutely aware of the impact that increases in line charges have on their community and have not made the decision to increase them lightly. The increase is largely driven by the extraordinary inflationary impacts experienced over recent years. The costs of materials, equipment and resources have increased significantly on the back of the Covid pandemic and international supply disruptions. While Electra Limited have taken steps to manage these inflationary pressures through efficiency gains in operations, they have not been able to mitigate all impacts and, accordingly, must pass some of the increase in costs onto their consumers.

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ELIN

Electricity Invercargill

7.7%

In line with the Default Price Path, Electricity Invercargill Limited is to increase its line charges for the residential and general customer groups by an average of 7.7%. The overall increase incorporates a 0.3% increase 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.

In the case of the individually assessed line charge customers, their consumption and demand profiles have been updated. This has resulted in some increases and decreases to customers depending on their load profile and their demand levels co-incident with our peak assessment periods.

Fixed Line Charges

In line with the Electricity Authority guidance papers all networks will recover the majority of the line charge increases through increases to the fixed daily charges. Half hour metered individually assessed line charge customers who currently have their annual line charge recovered 50% through the fixed charge and 50% through the variable charge will have this increased to 60% fixed charge and 40% through the variable line charge.

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HAWK

Unison Networks

Not advised

Overall revenue for Unison is essentially unchanged from the current year. This means that while there are changes to prices resulting mainly from increasing the fixed charge components and reducing variable components. In residential price categories Unison have increased the daily fixed charge for LFC compliant plans, M11 and TLU, from 45c per day to 60c. Unison have also increased their standard plans, M12 and THU, from $1.22 to $1.35. The impact of these changes will mostly be felt by low users as has been the case in recent years as Unison have progressed to disestablishment of the LFC Regulations.

The recognition that transmission charges should be allocated as closely as possible to the method of calculation, and then price through distribution as fixed charges has also meant a re-allocation of these charges towards larger users away from smaller users. There is still some transition in progress but this has resulted in some increases, on average, for larger commercial connections

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HEDL

Horizon Energy Distribution Ltd

5.7%

With effect from 1 April 2024, Horizon Networks will increase line revenue attributed to consumers (excluding major customers), by 5.7%. This is a total of the weighted average price changes across the various consumer groups.

The prices charged by Horizon Networks are regulated by the Commerce Commission (“Commission”) and have been set in accordance with the Commission’s approved allowances.

The increase in prices in 2024/25 is primarily as a result of inflation adjustments and other changes in accordance with the Commerce Commission’s Electricity Distribution Services Default Price-Quality Path Determination 2020.

Average price movements

• Low User Domestic – 3.8%
• Standard – 1.6%
• Capacity – 0.9%
• Maximum Demand – 6.3%

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LINE

The Lines Company

Not advised

• No change to pricing structures, pricing category codes or Time of Use (TOU) times.
• For residential customers:
  • Reduction in peak delivery prices by approximately 6%
  • Significant reduction in off-peak delivery prices by approximately 56%
  • Increase in shoulder delivery prices by approximately 4%
  • Significant increase in daily delivery prices by approximately 51%
• TLC has seen an increase in pass-through costs, and the movement between variable and fixed prices is a continuation of their pricing strategy for our prices to reflect costs (which are largely fixed, including transmission costs with the introduction of the new TPM in RY2024).
• The TLC Discount is forecast to be a total of $5.2m (an increase from $4.3m in RY2024).
• Capacity and Dedicated Asset delivery prices are increasing by 10%.
• Unmetered load daily delivery prices are increasing by 10%.

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LLNW

Lakeland Network

10%

This year there will be a price increase of an average 10% for the residential and general customer groups from 1 April 2024. Whilst the average price increase is as stated, 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; these revised levels will take effect from 1 April 2024.

Individual line charge customers have had their individual reassessment of consumption and demand levels completed, this has resulted in some increases and decreases to customers depending on their load profile and their demand levels co-incident with peak assessment periods.

Fixed Line Charges

In line with the Electricity Authority guidance papers all networks will recover the majority of the line charge increases through increases to the fixed daily charges. Half hour metered individually assessed line charge customers who currently have their annual line charge recovered 50% through the fixed charge and 50% through the variable charge will have this increased to 60% fixed charge and 40% through the variable line charge

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MARL

Marlborough Lines Limited

Not advised

Marlborough Lines Limited's [MLL’s] price changes from 1 April 2024 include:

• Closure of TS Temporary Supply price category. From 1 April 2024 we will no longer allow a new connection to go on the TS Price Code and it will instead be assigned DS15 or any other appropriate Price Code.
• Removal of Price Codes 20 and 30 from the price schedule. These are 20 hour controlled energy price codes which have been closed for many years and so should not be in use.

Introduction of Time of Use Pricing for General and Residential (non-remote only) consumers.

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MPOW

Mainpower New Zealand Ltd

Not advised

Not advised

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NELS

Nelson Electricity

10%

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 10% increase, this compares to the 3% decrease in prices for the current year.

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NPOW

NorthPower Limited

10%

Northpower has recently set the prices which they will charge electricity retailers for 2024/2025.  Compared to last year, these prices have increased on average by around 10%.  This is caused by three main changes:

• The cost of running thier network has gone up – the effects of inflation that we all feel in our own households is also experienced by Northpower as the costs of labour, fuel, equipment and materials continues to increase.
• The Northpower network, like most other networks around the country, was built decades ago and many of the assets are reaching end of life. This means Northpower have significantly increased their investment for replacing and upgrading assets, such as power lines, power poles, and substations.
• The cost of borrowing to fund this investment has also increased due to higher interest rates similar to many homes mortgage rates.

The above cost increases means that Northpower have had to increase charges to retailers, to ensure they continue to keep the network reliable and safe, and keep the lights on.

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ORON

Orion New Zealand Ltd

7.3%

This update reflects an inflation-based allowance within the Orion Networks price path along with:

• transmission charge increases that Orion are passing on,
• a regulatory adjustment relating to FY23 which is a result of actual revenue being less than actual allowable revenue, and
• additional revenue that Orion expect to receive from growth in chargeable quantities.

Combined with other minor variations in cost allowances, the overall average movement is a 7.3% price increase.

Within the overall average price increase of 7.3%, 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 FY25 Orion have made several fundamental but small changes to prices effective 1 April 2024. This will position their future pricing structure to better reflective the cost to serve and by providing better price signalling to consumers who utilise their network and enable flexibility.

• Following the Government decision in December 2021 to phase out the low fixed charge regulations commencing 1 April 2022, the general fixed daily supply charge will increase from 45 cents to 60 cents from 1 April 2024.
• Orion have made some more gradual structure changes to better reflect both Residential and SME connection utilization of the network. The general price categories have been further segmented with the GEN code recategorizing to RES to clearly indicate the price for residential consumers. Orion have also introduced controlled and uncontrolled daily fixed charges as per the clause 5.1 of the DDA. Orion are transitioning the fixed charge to a capacity-based charge over time.
• Orion have introduced more dynamic time of use (“TOU”) pricing and removed the fixed peak charge.

They were able to make this change while:

• making small immaterial changes to their pricing methodology,
• avoiding perverse impacts on consumers, and
• remaining compliant with the low fixed charge regulations.

Over the coming years, Orion will transition the fixed / variable split towards a higher proportion of costs recovered through a fixed charge. They will do this to the extent permissible each year under the transitional arrangements of the low fixed charges regulations and will preserve some level of price signal through variable charges.

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OTPO

OtagoNet Joint Venture

5.88%

In line with the Default Price Path, OtagoNet Joint Venture is to increase its line charges for all its customers by an average of 5.8%. The new prices also include an increase in Transmission costs of 2.3%. Standard residential and general customer group fixed charges increase by 14.7% with small changes to the peak and shoulder variable prices. Low user customers have a 15 cent per day increase in their daily fixed charge and a 2.61% increase to the peak variable price and 2.11% to the shoulder variable price.

In the case of the individually assessed line charge customers, their consumption and demand profiles have been updated, this has resulted in some increases and decreases to line charges depending on load profile.

Fixed Line Charges

In line with the Electricity Authority guidance papers all networks will recover the majority of the line charge increases through increases to the fixed daily charges. Half hour metered individually assessed line charge customers who currently have their annual line charge recovered 50% through the fixed charge and 50% through the variable charge will have this increased to 60% fixed charge and 40% through the variable line charge.

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POCO

Powerco Ltd

7.6%

The Pricing Policy contains the prices that apply from 1 April 2024 to 31 March 2025. 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 7.6% compared to last year. However, as shown below, the impact varies by region and consumer group (eg the increase for Mass Market is 8.2%, with Eastern being 7.5% and Western 8.8%).

Eastern

• Mass Market - 7.5%
• Commercial - 5.0%
• Industrial - 6.5%
• Overall - 7.0%

Western

• Mass Market - 8.8%
• Commercial - 6.0%
• Industrial - 5.1%
• Overall - 8.1%

Overall

• Mass Market - 8.2%
• Commercial - 5.3%
• Industrial - 5.9%
• Overall - 7.6%

CPI inflation washups have a significant impact on prices. PowerCo have also seen that Transmission, and ‘Pass Through and Recoverable’ costs have increased.

Notable changes to Categories, Tariffs, and the Pricing Policy

• GXP-ICP billing transition - Western network moves to ICP billing
• New categories W05/06, W22, and W29 plus streetlights are introduced to align more closely with the Eastern ICP tariffs
• Fixed charges: Continuation of LFC phase-out • The third year in the five-year LFC transition - low user Price Categories moving from 45c/day to 60c/day (250,000 ICPs impacted) TOU periods
• Time periods remain the same, but a seasonal summer/winter split is introduced.

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SCAN

Scanpower Ltd

5%

Prices have been set to secure a 5% increase in annual line charge revenue while adapting to the Electricity Authority's regulatory expectations. The underlying drivers of this increase include:

• 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

6%

Network Tasman are increasing the overall prices charged to retailers in 2024-25. Overall, they have increased lines charges by approximately 6%.

The transmission component of their prices has increased by approximately 7.5% to reflect an increase in transmission (and other pass-through) costs. They have increased the pre-discount distribution component of prices by close to 6% to reflect an increase in the costs of maintaining and operating their network. The effect of these changes will vary across price categories, depending on specific cost allocations (as outlined in the Network Tasman pricing methodology).

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TOPE

Top Energy Ltd

8.4%

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 8.4% before the posted discount. This consists of 11% increase in distribution charges and an 9% decrease in passthrough and recoverable charges. Loss factors have also been reviewed and revised down. This year Top Energy are completing the fixed charge recovery of Transmission charges under the new Transmission Pricing Methodology, in line with guidance from the Electricity Authority. For Low User Residential Customers the daily charge will increase 15c/day to 60c/day as permitted under the Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Amendment Regulations 2021. For Standard Residential the daily charge will increase 40c/day to 190c/day and General Commercial will increase by 50c/day to 240c/day. Off-peak variable prices have also been reduced. The overall price change has then been achieved primarily through adjusting the other variable components of the network charges.

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TPCO

The Power Company Ltd

6.3%

The Power Company Limited (TPCL) Board of Directors has determined that there will be an increase to line prices effective from1 April 2024. The overall increase in line charges is 6.3% for residential and general customers; this incorporates an increase in Transmission costs of 5.4%. 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 the pricing strategy TPCL are passing through price increases mainly through the fixed charges and a small increase to the peak variable price.

TPCL is posting its annual discount in the price schedules. The 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.

Individually assessed line charge customers have had their consumption and demand profiles updated. This has resulted in some increases and decreases to customers depending on their load profile and their demand levels co-incident with TPCL's peak assessment periods.

Fixed Line Charges

In line with the Electricity Authority guidance papers all networks will recover the majority of the line charge increases through increases to the fixed daily charges. Half hour metered individually assessed line charge customers who currently have their annual line charge recovered 50% through the fixed charge and 50% through the variable charge will have this increased to 60% fixed charge and 40% through the variable line charge.

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VECT & UNET

Vector Networks

8.6%

At a time of wide-spread cost of living challenges across the community, Vector have considered end user bill impacts when setting prices and also take into account pricing guidance issued by the Electricity Authority. Vector’s electricity distribution prices are regulated by the Commerce Commission (Commission) and based on the default price-quality path (DPP3) determination. Prices, to apply from 1 April 2024 result in an estimated weighted average price increase 8.6% in total (including Transmission).

The main reasons for the 1 April 2024 price increase are:

• regulated distribution revenue increasing by the Commission’s DPP3 CPI forecast of 2%;
• adjustments in other recoverable costs in accordance with the DPP3 determination;
• drawdowns from the wash up account. This account includes CPI wash-ups (difference between outturn and forecast CPI for prior periods) and volume wash ups (for prior periods);
• increase in pass through costs; and
• quantity forecasts impacts.

Transmission charges

Vector has split Transmission charges from its Lines charges. This means, rather than being bundled with its other charges Transmission Charges appear as a separate line item on your bill. We have used forecasted demand to apportion Vector's Transmission Charges and from 1 April 2024 this rate will change to $0.0190/kWh from the previous year.

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 2024 to 31 March 2025. This enables us to create a single $/kWh value and to carry out a ‘wash-up’ at the end of the year if there are any imbalances.

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 2025.

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WAIK

WEL Networks

Not advised

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 variable off-peak kWh charges for residential price categories (1153 and 1154), and variable uncontrolled kWh charges for residential price categories (1153C and 1154C), have decreased 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 offpeak kWh charges for General price category (1200), and variable uncontrolled kWh charges for General price category (1200C), have decreased. Nominated Capacity and Excess Demand charges for Large Customer price categories (1360, 1354, 1357) have increased. However, Summer and Winter peak demand charges have decreased for Large Customer price categories (1360, 1354, 1357) Pricing for Streetlighting and Unmetered connections have increased slightly.

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WAIP

Waipa Networks Ltd

10%

The pricing reflects a 10% overall increase in target lines revenue.

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WATA

Network Waitaki

11%

To ensure Network Waitaki can continue to provide a safe and reliable supply of electricity, they have adjusted their pricing so that their business remains sustainable over the long term and allows them to invest in the future of the network. This year’s price adjustment is affected by various factors, including:

• Major investment projects are being undertaken to upgrade their network to meet the current and future supply demands of customers. Their planned system growth projects and focussed renewals programme will future proof the network to support the increasing electrification of transport and industrial processes and as more homes and businesses electrify their vehicles and heating as part of decarbonising the region.
• Extraordinary cost inflation and market pressure leading to higher operating costs for their business.
• Pass-through cost: Network Waitaki’s pass-through charges have increased by 1.2% to provide for a 2% increase in these costs (Transpower and rates and levies).
• Regulatory pressure by the Electricity Authority on electricity distributors for faster reform of distribution network pricing to become more cost reflective, to ensure every electricity customer connected to our network contributes fairly to the cost of the service they provide.
• Phasing-out of Low Fixed Charge tariff regulations to support the transition to cost reflective distribution network pricing which will impact some residential customers.

As a result of these adjustments, Network Waitaki lines charges will increase 11.0% on average across all customers in their supply area.

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WPOW

Westpower Ltd

Not advised

There have been some major changes to the process for calculating tariffs this year in line with the guidelines from the Electricity Authority (EA) for Distribution Pricing.

The first change is the recommendation from EA that all transmission charges are now recovered by way of fixed charges only. This applies across all tariff groups except for Low Users, where the fixed charge is capped at 60 cents per day.

At the same time, fixed charges have also increased for distribution charges in line with the EA recommendation to move away from demand charges and in line with the approach to transmission pricing. This has resulted in increases to fixed charges across the full spectrum of line charges.

While there is now an absence of volume related charges for transmission recovery, volume charges remain for distribution charges, and these have increased to assist with the recovery of significant increases in distribution costs. Inflation, short supply and market forces have dramatically increased Westpower’s operating costs and this will be reflected in charges right across the country.

The second change relates to the move to allocate tariff charges closer to match operating costs as calculated by Westpower's Cost of Service Model developed to get an accurate view of where costs are best allocated. This has the effect of rebalancing revenues from each tariff group in relation to previous year’s revenue.

The result produces an average increase in fixed charges for residential and small commercial consumers of 20% while industrial consumer’s fixed charges increase by an average of 11%.

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