Vector builds and maintains Auckland’s electricity network including power lines, power poles, and other important equipment. Lines charges are a fraction of your power bill dedicated to helping us keep the lights on across our fast-growing city.
In 2014-15 we unintentionally earnt more than allowed by the Commerce Commission which regulates the earnings that energy companies like us can make. We’ve been upfront about this and we will return $13.9m to Auckland consumers. We worked closely with the Commission and agreed the best way to return this to consumers.
Why did Vector overcharge some Aucklanders?
It was unintentional. Some consumers were not put onto the most suitable lines charge plan for their electricity use by their retailer, which meant they didn’t make savings where possible.
How is Vector compensating for this overcharging?
The $13.9m will be effectively paid back to consumers between 1 April 2018 and 31 March 2020 by making the prices lower than they would otherwise have been if the overcharging had not occurred.
Why can’t Vector pay this back right now in a lump sum?
We discussed repayment solutions at length with the Commerce Commission and it was decided that the approach agreed to is the most reliable and efficient way to ensure consumers receive the $13.9m.
Will this be applied to all of Auckland?
The pricing solution will apply to lines charges across
Vector’s electricity network.
What if I don’t live in Auckland anymore?
As the agreement with the Commission is to pay the $13.9m by adjusting prices, the $13.9m can only be distributed to consumers that will use electricity on the Auckland network between 1 April 2018 and 31 March 2020.