Personal / Electricity / Pricing / Electricity Prices 2020

Electricity prices effective from 1 April 2020

 


Pricing Disclosure pursuant to Electricity Distribution Information Disclosure Determination 2012 (consolidated 2018). 

Vector’s line charges include the cost charged to Vector by Transpower for delivering electricity across Transpower's national grid to Vector’s network and the price relating to the cost of delivering electricity across our distribution network. Line charges are generally billed to you by your electricity retailer.

Our annual price changes are limited to that required to achieve the net allowable revenue prescribed by the  Commerce Commission in its Electricity Distribution Services Default Price-Quality Path Determination 2020 (DPP) plus changes in pass-through and recoverable costs (e.g. Transpower transmission charges, council rates, statutory levies and other regulatory allowances) and a revenue wash-up from any under or over-recovery from the previous pricing year. The transmission component of our charges is approximately 32% of our total line charges. 

From 1 April 2020, we are decreasing our total line charge prices by a weighted average of 9.5%. This change is due to:

  • Lower net allowable revenue associated with the DPP (-4.1%)
  • A reduction in forecast transmission charges (-4.5%)
  • Forecast over-recovery in previous year carried forward (-1.6%)
  • Partially offset by an increase in other forecast pass-through and recoverable costs, and quantity impacts (+0.7%)

As we generally charge your retailer and not you directly you may see these price reductions reflected in the bill you receive from your retailer as we have encouraged retailers to pass the reduction on.

We are also restructuring our prices for our residential and general consumer groups to a two-part time of use (TOU) structure (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. The change to TOU 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 and general 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. 

The following tables are a summary of Vector's Northern and Auckland electricity network line charges. All prices are exclusive of GST. 

For a full description of our line charges and how they are applied, see www.vector.co.nz/personal/electricity/about-our network/pricing and www.vector.co.nz/business/electricity/about-our-network/pricing.

For further information on our pricing methodology used to set prices, see www.vector.co.nz/about-us/regulatory/disclosures-electricity/pricing-methodology.

Line charge prices for residential and general consumers from 1 April 2020

(previous price, if changing)

  * The transmission charge price is only included in this component of the line charge price 

Line charge prices for commercial consumers from 1 April 2020

(previous price, if changing)


* The transmission charge price is only included in this component of the line charge price