Network Tasman announces $6 million in line charge discounts

Consumer-owned local electricity distributor Network Tasman has announced $6 million of discounts will be credited onto its consumers’ spring power bills.

“Network Tasman is pleased to provide a spring discount to our customers,” said Network Tasman CEO Oliver Kearney. He noted that the same overall discount rate is being applied as in 2017, while Network Tasman’s residential line charges remain among the lowest in the country.

The majority of the company’s 40,000 connections will attract a discount that is based upon the amount of power used from 1 April 2018 to 31 August 2018. An average residential consumer using around 7,000 kWh per annum can expect a discount of $97 on their September or October power bill. The discount being applied is 2.99c per kWh (including GST).

To be eligible a consumer must have had an active, metered connection to Network Tasman’s electricity distribution system as at midnight 12 September 2018. “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.” 

The company is currently arranging for electricity retailers to credit the discounts onto consumers’ power bills in September and October. The discount will be clearly identified as a separate item. 

Consumers will also receive a second discount in either April or May 2019 based on electricity usage from 1 September 2018 to 31 March 2019. This second discount replaces the discount that Network Tasman has applied in December in previous years. Network Tasman has altered the timing of discount payments to preserve the value of discounts to consumers, following an IRD review of the tax status of line charge discounts.

If consumers have any queries or questions about these changes they are welcome to email info@networktasman.co.nz or phone Network Tasman on 0800 508 098.

About Network Tasman

Network Tasman is 100% consumer-owned by the Network Tasman Trust. Its network covers the Nelson Tasman region, excluding the central Nelson area. Consumer ownership and a focus on cost efficiency has enabled Network Tasman to credit $165 million of discounts back to consumers in the region since the scheme’s inception in 1994.