Time of use pricing
A two-part time of use (TOU) price structure is mandatory for all residential consumers where the retailer obtains the interval data from the consumer’s smart meter. The TOU structure has a daily fixed price with different volumetric prices depending on the time period when the electricity is used, that has peak time pricing during 7am-11am and 5pm-9pm weekdays and off-peak pricing during other times. For residential consumers without smart meters or where their retailer doesn’t obtain smart meter interval data, an anytime volumetric price is applied instead.
TOU pricing means that during peak times our volumetric prices will be higher than during off-peak times, which better reflect the costs of electricity distribution and transmission as high electricity demand puts pressure on the electricity networks.
TOU is the best current overall candidate for a standard price structure resulting from a thorough recent review of our price structures balancing the trade-off between competing goals such as cost reflectivity, simplicity, acceptability and bill impact, underpinned by regulatory requirements including the Low User Fixed Charge Regulations and Electricity Authority’s Pricing Principles.
TOU pricing offers residential consumers the ability to reduce their electricity bill by shifting some electricity use from peak to off-peak times. Please contact your retailer to see if they are offering a TOU plan that passes through to you the benefits of our TOU pricing. A smart meter capable of communicating interval consumption data is required.
Controlled pricing
Previously, we merged our residential controlled and gas price categories for electricity consumers into the controlled price categories. These were previously priced at the same rates and designed to reward residential consumers for the benefit these households deliver to us in helping to reduce load during peak periods, via electrical hot water load control system or gas connections which typically use less electricity during peak periods. Consumers with an electrical hot water cylinder connected to our Load Control System or with an active gas ICP connection to our gas distribution network are eligible for the controlled price categories.
From 1 April 2022, we are expanding the eligibility criteria for the residential TOU controlled price categories to include consumers with smart electric vehicle chargers with IP addresses that are capable of being connected to Vector's distributed energy resources management system (DERMS).
If you want to know whether you’re eligible for the controlled price plan and would benefit from making a switch, get in touch with your electricity retailer.
Low user fixed charge
In September 2021, the Government agreed to phase-out the Low User Fixed Charge Regulations from 1 April 2022. These regulations set a maximum low fixed charge of 30 cents per day (excluding GST) that we and your retailer could offer to residential consumers who use less than 8,000kWh per year. The low user price categories have a combination of low daily charges and higher variable charges when compared with our standard price categories.
Phasing-out the regulations will see the maximum low fixed charge increase gradually over five years until it is about the same as the standard fixed charge. Each year, the maximum low fixed charge will increase by 30 cents (excluding GST). The increase in the fixed line charge because of the phasing-out of the regulations will result in a decrease to the volumetric line charges. While the regulations set the maximum amount, retailers may choose to set lower rates for their low fixed charges.
While the regulations are being phased out, it still pays to check with your retailer that you’re on the right plan. if you are a low-use electricity consumer, using less than 8,000kWh per year, the low fixed charge price categories could still be cheaper for you so it may pay to check with your retailer to see if you’re eligible for these price categories.
Your electricity retailer should inform you at least annually of how much energy you use, and whether it may be beneficial for you to switch to a low fixed charge price category. If you want to know how much electricity you use, which price category you are on or whether you are eligible for a low fixed charge price category, get in touch with your retailer - it could save you money.