Last of the line charge 'resets'
27 February 2018
The Lines Company (TLC) has reset its line charges for the last time under the current system before the new pricing comes into effect later this year.
The reset lines charges will apply to all customers from April to September 2018, and will show up in bills from 1 April 2018. The reset charges are a transition between the company’s current pricing and a new, more transparent pricing structure which begins in October 2018.
The Lines Company chief executive Sean Horgan said that there will be a small increase in distribution prices.
“Under our current pricing customers pay a fixed amount each month based on how they used electricity over the previous year. From October, each monthly bill will vary depending on when customers use electricity and in what quantities. This reset is about balancing the needs of running and reinvesting in our network over the next 12 months. We are looking at a likely increase of around 50% in our capital spend over the next few years.”
“The reset price affects customers differently. Some customers will see their bill go up while others will see their bill go down based on how customers used electricity over a 12 month period.”
The Lines Company operates more than 4,500km of power lines, more than 5,000 transformers and look after 35,000 power poles across a large, very rugged geographical area, Horgan said.
“To keep people and businesses connected 24-hours a day, we need to continually maintain and invest in our lines network.”
Horgan said this was the final price reset before the new pricing begins in October. The new way of charging will be far simpler and more transparent.
The new way of charging would be based on “the feedback we have received from the community” he said.
All customers will receive more information about the new April to September line charges in the coming week.