KEY POINTS:
Power consumers in the north are the big losers in a Vector price shift announced today, while power users in the capital are set to make a saving.
Lines company Vector plans to increase electricity line charges to its customers in Auckland and Northern networks from April.
An average residential customer on the Northern and Auckland networks will experience an increase of approximately $5 to $6 dollars a month.
An average Wellington residential consumer, however, will experience a decrease of approximately $1 a month.
Vector CEO Mark Franklin said the changes included the annual pass-through costs allowed under the Commerce Commission's price threshold regime, as well as a rebalancing component.
"Vector voluntarily entered a rebalancing programme in 2005 to balance returns between the diverse customer categories across the three networks.
"This rebalancing programme was formalised in the administrative settlement that the Commerce Commission accepted in principle in October 2006.
"The rebalancing programme is revenue neutral for Vector and will be completed by 2009," Mr Franklin said.
Vector said some commercial customers within Vector's Auckland network will receive price cuts and others price increases, depending upon which tariff they are on.
All commercial customers on the Wellington network and the majority on the Northern network will get price reductions, the company added.
- NZ HERALD STAFF
