Network notes small rise in line charges

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Power consumers in Gisborne and Wairoa will face just a small increase in the amount they pay to local lines company Eastland Network from April.

Eastland Network today announced its pricing schedule for the period April 1, 2019 to March 31, 2020.

The company pointed out that prices were strictly regulated by the Commerce Commission, and must comply with the Commerce Commission’s Default Price-Quality Path Determination requirements.

From April 1, there will be a small decrease in Transpower (national grid operator) charges and a small increase in Eastland Network’s line charges.

“This means that, for the average Eastland domestic customer, there will be an overall increase of approximately 0.67 percent, or $1.31 including GST per month,” Eastland Network says.

On average, line charges make up around 40 percent of the total cost on an electricity bill, although this does vary depending on different retailer offers.

Lines charges are a combination of transmission charges, which are passed on from Transpower, and distribution charges.

“Eastland Network bills these line charges directly to energy retailers, and they incorporate them into each customer’s power bill.”

The remaining costs are determined by the retailers.

The network pricing is reviewed annually.

Eastland Network’s tariff structure has not been altered, and remains the same as last year.

The region’s electricity usage has remained steady over the past 12 months, with customer demand at a similar level to a year ago.

From 2020, the Electricity Authority requires all electricity networks across the country to review their pricing structures to ensure distribution charges are as cost-reflective as possible.

“Eastland Network is currently working through this process and will keep people updated on what this might mean for them.

“In the meantime, details of the coming year’s prices are in today’s paper and will be repeated on Saturday.”

To find out more about power bills, how they are structured and what people are paying, people could visit the Electric Village at 37 Gladstone Road Gisborne.

The pricing announcement comes on the same day an independent review of the national electricity market proposed a new consumer advisory council be set up to promote the interests of residential and small business consumers.

“The council would, among other matters, look at the price, quality and reliability of electricity,” a new discussion paper stated.

“It would also work with the Electricity Authority, Commerce Commission, other government agencies and industry participants on any matters affecting electricity consumers. It would complement and extend, rather than replace, consumer representation on existing advisory groups and consumer panels.

The Community Energy Network said such a body “would be able to fairly influence policy and provide an appropriate communication channel for all stakeholders”.

The period for submissions will be four weeks and closes on Friday March 22 at noon. Submissions can be made on the MBIE website.