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More investment from us, and lower charges for you

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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.

Tauranga 

Distribution -11.8%
11.8%
Transmission -12.9%
12.9%
Overall -12.2%
12.2%

Thames Valley

Distribution -13.4%
13.4%
Transmission -16.2%
16.2%
Overall -14.3%
14.3%

Western

Distribution -11.6%
11.6%
Transmission -16.6%
16.6%
Overall -12.9%
12.9%

Overall

Distribution -12.1%
12.1%
Transmission -15.5%
15.5%
Overall -13.1%
13.1%

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

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This is how your electricity bill is divided up – Distribution, Transmission and all non-Powerco charges. These figures are from the Electricity Authority.

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Distribution

Powerco is here to bring the power to your property. It’s our job to look after the lines that get it to you from the National Grid, safely, reliably and efficiently.

Powerco substations reduce the high voltage electricity from the grid ready for our customers use.

We keep the lights on for you and around 900,000 customers, across 340,000 homes, businesses and organisations in the North Island.

For more information on what and how Powerco is investing in the distribution network see Delivering on our promise

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Transmission

Transpower owns and operates the National Grid – the high voltage transmission network connecting areas of generation with towns and cities across New Zealand.

Transpower keeps New Zealand’s energy flowing by:

  • Transporting bulk electricity from where it is generated to cities and towns
  • Connecting with lines companies (like Powerco) who  deliver that power to the doorsteps of New Zealand’s homes and businesses

Lines companies pay Transpower to use its assets, and by the time the power gets to your home or business, transmission costs make up just a small proportion of your electricity bill – on average around 11%.

Because its transmission network is a natural monopoly, the investments and transmission charges are regulated by the Commerce Commission.

For more information visit Transpower

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All non-Powerco charges

The 62% of your non-Powerco charges is made up of the following figures:

0 %
Generation
0 %
Other
0 %
Retail
0 %
GST

‘Other’ includes metering charges and the Electricity Authority Levy. This levy funds  the Electricity Authority’s work to regulate the electricity industry.

For more information visit the Electricity Authority

Get in touch today

If you’re in need of further information or still have questions regarding our pricing, please feel free to get in touch. We value your feedback and encourage you to have your say.

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