Network Tasman lines charges decreasing from the beginning of April

Network Tasman’s lines charges will decrease from 1 April 2019. This is good news for almost all consumers as it means the average residential customer’s lines charge will fall by $3.50 per month (including GST).

“The price reduction is happening for several reasons,” says Network Tasman CEO Oliver Kearney. “Firstly, Network Tasman’s charges from Transpower for connection to the national grid have fallen and we are reducing our prices to reflect this. Secondly, in addition to our existing low-user plan we are introducing a standard pricing plan for those consumers that fall outside the low-user regulations. These changes will improve the fairness of our charges for our consumers and ensure that lines charges better reflect the costs of our services.

“This means our charges will fall for 99 percent of residential consumers, if they are on the correct electricity plan. Households consuming more than 8,000kWh a year should be on a ‘standard’ plan while those consuming less than 8,000kWh a year should be on a ‘low user’ plan.”

Network Tasman recommends any users who are uncertain if they are on the correct plan to contact their electricity provider in the first instance.

After discounts Network Tasman’s residential prices are currently the lowest of New Zealand’s 29 electricity distribution companies (according to the MBIE Quarterly Survey of Domestic Electricity Prices, November 2018). Network Tasman expects this to remain the case when these new price reductions are introduced in April.

“As a consumer-owned company, providing a reliable and cost- efficient service to customers remains a key objective for us,” says Kearney.

Network Tasman’s revenues are regulated by the Commerce Commission which sets the maximum revenue it can earn. During the past three years, Network Tasman’s lines charges have averaged $1.4 million per annum below the level set by the Commission.

The price charged by Network Tasman to retailers for use of both the local electricity distribution network and the national grid represents around one-third of retail electricity prices paid by consumers.

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