No increase in Network Tasman distribution pricing for 2016
Local consumer-owned Network Tasman is maintaining its 2015 distribution prices for the coming year. Network Tasman’s distribution charges represent a component of all power monthly power bills sent by electricity retailers.
In November Business Innovation and Employment (MBIE) found that Network Tasman’s prices rank fifth lowest out of 42 local electricity distribution companies nationally, even before taking into account the $11.8m of discounts provided by Network Tasman to its consumers during 2015.
Despite a zero percent price increase for its own services, Network Tasman’s overall network charge will rise by 0.6% due to a price increase for 2016 by national grid owner Transpower. Network Tasman has chosen to pass on only some of the higher transmission charges levied by Transpower.
Network Tasman is required to bundle transmission costs with its network distribution costs into an overall ‘network charge’, which will from 1 April 2016 add another 32 cents per month or $3.80 annually to average domestic power bills, if retailers pass on the change in network charges.
“We are pleased to be able to constrain prices tightly for the coming year,” said Network Tasman’s Chief Executive Wayne Mackey, “especially in the face of a general upward trend in input costs.
“At the same time as we are maintaining our distribution network pricing at 2015 levels, we continue to invest in improving our network and fault response functions. Key investments during the past 12 months included the undergrounding of power lines in parts of High Street, Motueka, a new substation in Upper Takaka to boost capacity in support of dairying growth in Golden Bay, and upgrades to communications systems to improve future fault responses.”