Network Tasman’s residential pricing remains the lowest in NZ despite price increase

Network Tasman will be increasing its prices by 1.3% from 1 April 2018. This increase equates to 68c per month (excl GST) for the average residential connection.

After discount, Network Tasman’s residential prices will remain the lowest of New Zealand’s 29 electricity distribution companies (MBIE Quarterly Survey of Domestic Electricity Prices, November 2017). Even before taking discounts into account, Network Tasman’s residential charges are expected to remain among the cheapest in the country.

Chief Executive Oliver Kearney said the company is focussed on continuing to provide good value for money.  

“In addition to keeping price increases to a minimum, we continue to prudently invest in maintaining and improving the safety, reliability and capacity of our core electricity networks,” says Kearney. “Network Tasman’s revenues are regulated by the Commerce Commission. Over the past three years, Network Tasman’s line charges have averaged $2 million per annum below what it was permitted to charge as a regulated electricity lines company.”

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.

Network price indicators by region (cents/kWh) – lines price component: MBIE Quarterly Survey of Domestic Electricity Prices, November 2017

Note: Prices exclude GST and are net of line discounts. Based on average usage of 22kWh per day, with 40% of consumption being controlled hot water heating.

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 39,500 consumer connections in the north-western corner of the South Island. Network Tasman is wholly owned by a consumer trust (the Network Tasman Trust).