Our pricing
Most gas customers have a contract for the supply of natural gas to their home or business with a gas retailer. Your retailer will bundle the cost of services such as; the purchase price of wholesale gas, transmission services, local distribution and metering, and provide you with one monthly bill.
Our local distribution charges are billed directly to gas retailers, and we have a supply contract with the retailer. We have two price schedules:
- Auckland network. Note: following the legal amalgamation of Vector Limited and UnitedNetworks the relevant contracting party is Vector Limited.
- Rest of North Island network.
For pricing for LPG bottled delivery in your area, contact OnGas.
Transmission network charges
We have a policy of non-discrimination in setting prices for use of our transmission system. This does not mean that the services are provided to all customers on the same terms, but that the same service (including terms) is available to all customers in the same circumstances. This has important consequences for competition in the provision of transmission services. Pricing flexibility provides competitive prices, avoids the unnecessary duplication of assets, and benefits all system users by maximising the efficient use of our transmission network.
(Please note this pricing methodology applies to gas shippers and retailers. For end users, such as homes and businesses, a transmission charge will be applied to your total bill supplied by your energy retailer).
The price for transmission services comprises three principal elements:
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Capacity reservation fees. Through these, the fixed costs of pipeline assets are recovered. The fees are calculated in dollars per Gigajoule of reserved capacity per year. They are usually abbreviated to $/GJ of reserved Maximum Daily Quantity (MDQ) or $/GJMDQ. The resulting charges are recovered in 12 equal monthly payments.
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Overrun fees. These apply to any deliveries made in excess of reserved MDQ. It is to a customer’s advantage to reserve MDQ as accurately as possible. This fee is applied each month to overruns made in the previous month.
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Throughput fee. These recovers all other costs. Fees are expressed in $/GJ of gas delivered and are applied each month to deliveries made in the previous month. Throughput charges therefore vary from month to month, in line with the quantity of gas delivered. The same throughput fee applies to gas delivered anywhere on the system.
For the latest transmission pricing refer to the publications page of Vector OATIS.