More investment from us, and lower charges for you
From 1 April 2020 Powerco will be changing its electricity distribution prices. For most people the new prices will be lower, as our regulated revenue is dropping by around 12.5%.
We are also upgrading and replacing a lot of network assets as part of a five-year investment programme. Last year we spent over $190 million on maintenance, upgrades, and renewals, which is 29% more than the year before.
It was expected that prices would increase by around 2% per year due to this increased investment. Interest rates have dropped, and they are a key part of calculating what the Commerce Commission allows us to charge. The drop in rates has also reduced the transmission grid charges that are included in our prices.
Powerco invoices retailers (who send you your power bills) for the use of our electricity networks. We own and manage the assets that get power to your door – the poles, wires, transformers and substations.
Our line charges are around a quarter of your overall electricity bill. We also pass on Transpower’s charges, for using the national transmission network (often called the national grid). Transmission charges can vary between regions but are around 11% of your overall electricity bill. Retailers then invoice customers for all electricity costs.
Average Electricity Bill
This is how your electricity bill is divided up – Distribution, Transmission and all non-Powerco charges. These figures are from the Electricity Authority.