electricity prices effective from 1 april 2022
Pricing Disclosure pursuant to Electricity Distribution Information Disclosure Determination 2012 (consolidated 2021).
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 previous pricing years. The transmission component of our charges is approximately 29% of our total line charges.
From 1 April 2022, our total line charge prices are increasing by an estimated weighted average of 1.3%.
The increase (impact) is the result of forecast:
- inflation (+1.3%);
- rates and levy costs (+0.6%);
- transmission charges (+0.3%);
- regulatory adjustments and voluntarily under-pricing (+1.5%); and
- volume (-2.4%).
From 1 April 2021, the two-part time of use (TOU) pricing (daily fixed price with different volumetric prices depending on the time period when the electricity is used) was made mandatory for all residential and general consumers where the retailer obtains the interval data.
From 1 April 2022, the commercial TOU pricing with demand charges (based on the consumer’s average peak monthly load) will be mandatory for all new commercial connections and existing consumers with the metering capable of recording half hourly data.
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).
We are introducing new TOU commercial price categories for consumers that have a connection directly to a Vector zone substation and/or have paid for their connection assets to Vector’s high voltage network.
TOU pricing means that during peak times the line charges will be higher than during off-peak times, which better reflects the costs of electricity distribution and transmission as high electricity demand puts pressure on the electricity networks. TOU pricing offers residential, general and commercial consumers the ability to reduce their electricity bill by shifting some electricity use from peak to off-peak times. As we generally charge your retailer and not you directly, 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 recording and communicating half hourly interval consumption data is required.
For further information on our pricing methodology used to set prices, see www.vector.co.nz/about-us/regulatory/disclosures-electricity/pricing-methodology.
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 or www.vector.co.nz/business/electricity/about-our-network/pricing.