Network Tasman announces $3.5 million in line charge discounts

Consumer-owned local electricity distributor Network Tasman has announced $3.5 million of discounts will be credited onto its consumers’ December power bills. 

 

“Network Tasman is pleased to provide an end of year discount at the same level as our December 2015 discount,” said Network Tasman CEO Oliver Kearney. “This discount will bring the total paid to consumers in 2016 to $11 million. This has been achieved while delivering a reliable electricity supply and ongoing investment in our network.” 

The company’s 39,100 consumers will receive a discount that is based upon the amount of power used, but an average residential consumer using 6,900kWh per annum can expect a discount of $57 on their December power bill.

To be eligible a consumer must have had an active, metered connection to Network Tasman’s electricity distribution system as at midnight 18 November 2016. The network covers the Nelson-Tasman region, excluding the central Nelson area.

The company is currently arranging for electricity retailers to credit the discounts onto consumers’ power bills from late November through to the end of December. The discount will be clearly identified as a separate item.  

“Eligible consumers will automatically receive a discount irrespective of which electricity retailer they’re signed up with,” said Mr Kearney. “Switching retailers does not alter this entitlement because the discount comes from Network Tasman and not the retailer.”  

Mr Kearney noted that the Inland Revenue Department is currently reviewing the way these discounts are paid. “These discounts are an important mechanism to lower household power bills for our customers,” said Mr Kearney. “Network Tasman will be actively engaging with the IRD to ensure that the issue and the benefits of providing line charge discounts to our consumers are clearly understood.”

Network Tasman is 100% consumer-owned by the Network Tasman Trust. Consumer ownership and a focus on cost efficiency has enabled Network Tasman to credit more than $140 million of discounts back to consumers in the region since the scheme’s inception in 1994. Network Tasman’s residential line charges remain among the lowest in the country.”

The Network Tasman Trust, which owns Network Tasman Ltd on behalf of consumers, receives a dividend each year from Network Tasman and makes an annual distribution of accumulated funds in the form of a cheque to Network Tasman consumers in December. The cheque paid by the Trust is separate from the discount provided by Network Tasman.