Network Tasman to decrease its prices from the beginning of April 2019

(Media Release)

Network Tasman will be decreasing its prices from 1 April 2019. This means the average residential customer’s lines charges will fall by $3.50 per month (including GST).

Network Tasman’s cost of connecting to the national grid has fallen and it is reducing its prices to reflect this.

After discounts, Network Tasman’s residential prices remain the lowest of New Zealand’s 29 electricity distribution companies (MBIE Quarterly Survey of Domestic Electricity Prices, November 2018). Even before taking discounts into account, Network Tasman’s residential charges are expected to remain among the lowest in the country.

Network Tasman is also taking the opportunity to improve the fairness of its charges so that the prices consumers pay better reflect the costs of serving them. The effect of our changes is that a greater proportion of our cost savings accrue to those consumers who have previously been paying relatively higher lines charges.

The effect of these changes is that our charges will fall for 99 percent of residential consumers, if they are on the right electricity plan. Households consuming more than 8,000kWh a year should be on a ‘standard’ plan and those consuming less than 8,000kWh a year should be on a ‘low user’ plan.

The low user plan is limited, by regulations, to primary residences. Baches and other secondary residences do not qualify for a low user plan. Network Tasman recommends any users who are uncertain if they are on the correct plan contact their electricity provider to check.

Chief Executive Oliver Kearney said that as a consumer-owned company, providing a reliable and cost efficient service to customers remains a key objective for the company. “Network Tasman’s revenues are regulated by the Commerce Commission who set the maximum revenue we can earn. During the past three years, Network Tasman’s line charges have averaged $1.4 million per annum below the level set by the Commission.”

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

About Network Tasman

Network Tasman owns and operates the electricity distribution network in the wider Nelson and Tasman areas, excluding Nelson Electricity’s supply area in Nelson city. The Network Tasman electricity network distributes power to approximately 40,000 consumer connections in the north-western corner of the South Island. Network Tasman is wholly owned by a consumer trust (the Network Tasman Trust).