Electricity line charges to rise slightly from 1 April 2016

Electricity line charges to rise slightly from 1 April 2016

Gisborne, East Coast and Wairoa households will pay slightly more for their electricity from 1 April, due to an increase in line charges from Eastland Network.

The company, which is part of the ECT-owned Eastland Group of companies, today announced its pricing schedule for the period 1 April 2016 to 31 March 2017.

Eastland Network general manager, Brent Stewart, says for an average household the changes amount to an increase of around $6 a month including GST.

Mr Stewart says line charges include both distribution and transmission costs, with the changes reflecting a 1.2 percent increase in distribution charges, and a 22 percent increase in transmission charges. (The issue is further complicated because while previously the transmission charges related sole to Transpower, Eastland Network now owns also owns transmission assets.)

He said the rises were all Commerce Commission revenue allowances to keep up with inflationary pressures.

The increase will add about $6 to monthly power bills for Eastland Network ‘s 19,000 domestic consumers in the Gisborne, East Coast, Wairoa and Tuai areas. “For an average domestic customer that $6 increase is made up of a rise in the distribution component of about 76 cents a month, and about $4.51 in the transmission component,” said Mr Stewart.

“For the past two years, there has been no increase in Eastland Network’s distribution line charges however the network can no longer absorb the increased costs it has faced each year.”

He says the network’s tariff structure has not been altered this year.

“As part of New Zealand’s heavily regulated electricity sector, any change in Eastland Network’s revenue must comply with the Commerce Commission’s Default Price-Quality Path Determination requirements.”

Mr Stewart says Eastland Network’s line charge revenue for the 2016-2017 financial year has been forecast at $35.49 million.

More information is available on the company’s website www.eastland.nz .


Eastland Network provides electricity to 19,207 domestic consumers and 6,238 non-domestic consumers in the Gisborne, East Coast, Wairoa and Tuai areas. It bills line charges to the end-user’s energy retailer, which then incorporates them into each customer’s power bill. Line charges make up around 40 percent of consumer electricity costs. The remaining approximate 60 percent of costs are determined by energy retailers.


More information:

Eastland Network Line Charges as at 1 April 2016