Recent Price Increases in the Energy Industry
Change continuously happens in life and New Zealand’s electricity distribution industry is no exception! Here are some of the latest changes regarding our power suppliers.
Powerco’s Price Increase Will Help Upgrade Network
In order to fund a $1.27 billion upgrade to its network, the Commerce Commission recently approved Powerco’s price increase application.
Deeming the upgrade necessary to maintain a safe, secure and reliable network for customers, the Commerce Commission approved the price increase as of April 1.
As part of the application approval, Powerco is required to report on its investment to both the commission and its consumers on a yearly basis.
Wellington Electricity’s Rate Increase to Help with Earthquake Preparedness
An additional $31 million was approved by the Commerce Commission to help improve the network’s resilience to major earthquakes.
Last December, Wellington Electricity had submitted their urgent application which documented the need to strengthen its substations and purchase emergency equipment and critical spares.
The investment is expected to cost the average Wellington Electricity consumer an addition $1.70 each month.
Potential Rate Increases in the Future for Aurora
In early March, electricity provider Aurora (which serves Dunedin, Central Otago and Queenstown) started an independent review of its electricity network to pursue a price increase. The electricity provider’s older network is in need of repairs, which the price increase (if approved) will help cover.
The company has already notified the Commerce Commission of its desire to launch a customized price path (CPP) beginning in mid-2020. If approved, the distribution line charge on customers’ bills will be increased to fund future network investment. The actual price increase has yet to be decided.
This past December, the company finished a $30 million fast-track pole programme, which saw 2800 of the network’s worst poles replaced.
Over the upcoming decade, an investment of more than $700 million is planned by the company to improve its ageing network.
Commerce Commission Plays a Part in Price Increases
Although any lines company can apply for a CPP (with most applications seeking line charges to fund network upgrades), the Commerce Commission closely analyzes applications.
The end goal is that a balanced price-quality path for both companies and consumers can be achieved.
Switchme Helps You Get the Best Rate!
With the constant changes in New Zealand’s electricity industry, you need a trusted ally to help you get the best rate! That’s where a Switchme comparison comes in.
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Contact us today to learn more about how we can help you get the best energy rate currently available!