Time of use pricing
A two-part time of use (TOU) price structure is the mandatory charge to electricity retailers for all residential ICPs where the electricity retailer obtains the interval data from the ICP’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 at the ICP. From 1 April 2023, peak time pricing is 7am to11am and 5pm to 9pm weekdays in the winter period (01 April to 30 September inclusive). Off-peak pricing applies at all other times. For residential ICPs without smart meters or where their retailer doesn’t obtain smart meter interval data, an anytime volumetric price is charged to electricity retailers 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. For residential standard ICPs, the off-peak variable price is zero cents per kWh, therefore the only distribution line charge between October and March is the fixed daily charge.
TOU pricing if passed on by electricity retailers offers residential ICPs 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.
TOU pricing offers residential ICPs 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
Vector maintains residential controlled price categories designed to reward residential ICPs for the benefit these households deliver to us in helping to reduce load during peak periods.
From 1 April 2023, only ICPs that have an electrical hot water cylinder connected to our Load Control System are eligible for the controlled price categories. Previously ICPs with an active gas connection to our gas distribution network, or with smart electric vehicle chargers which are capable of being connected to Vector’s distributed energy resources management system (DERMS) were also eligible.
From 1 April 2023, dual energy (electricity & gas) ICPs are no longer eligible for residential controlled prices as we believe there is a price benefit from the time of use tariff for residential electricity ICP with a gas connection which tend to have lower peak usage.
From 1 April 2023, we have introduced a new TOU distributed energy resource (DER) tariff for residential ICPs with load that can be connected to or respond to our DERMS. We believe this will give us the flexibility for future load management.
With the introduction of the new TPM by Transpower, the benefit of hot water control is significantly reduced. From 1 April 2023, we have reduced the differential between controlled hot water and uncontrolled prices for the Auckland network residential ICPs. For residential ICPs on the Northern Network there is no differential between controlled hot water and uncontrolled hot water prices as controlling hot water on this network is no longer available. Please note that the ICPs in the Auckland and Northern networks have different controlled prices due to two different hot water control systems are used in the area.
If you want to know whether you’re eligible for the controlled or distributed energy resource price plans 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 ICPs where consumption is 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 retail 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, electricity 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 electricity 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 electricity retailer to see if you are 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 electricity retailer - it could save you money.