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Annual price change for electricity distribution

22 February 2023

From 1 April this year, The Lines Company (TLC) lines prices charged to electricity retailers, who then combined those with other energy costs to determine what they charge customers, are decreasing by 3% on average. The move has been made to help stabilise pricing for customers given the current cost-of-living crisis.

“We’re seeing a range of cost increases, particularly from Transpower who have increased their charges to us to use the national grid,” said Romay Rundgren, GM Finance, TLC.

The amount Transpower charges TLC is increasing by $1.1m (up 21%) as they roll out a new method of pricing. This is largely offset by a reduction in other costs, helping to cushion the impact.

“Distribution charges only make up part of a typical power bill, about 34%, and our line distribution charges aren’t changing this year for most customers.

“For an average residential customer with an average annual consumption of 8,000 kWh would see lines charges, as charged to retailers, reduce by around $50 a year” said Rundgren.

“We realise any increase puts pressure on budgets, and we’re focused on energy education and support – working alongside individual customers and community groups across the network. Our work, and that of Maru Energy Trust (Maru), is helping customers to use energy more efficiently, which directly helps to reduce the cost of electricity” said Mike Fox, Chief Executive – TLC.

Energy awareness

TLC’s dedicated Customer & Community Engagement team work in the community educating and creating awareness around energy efficient practices – with a new series of energy education seminars due to kick off in the Autumn. These seminars build on the range of useful energy-saving tips available on TLC’s website. Small changes like using LED lightbulbs, insulating doors and windows, to wrapping hot water cylinders are just some of the ways energy consumption can be reduced and money saved.

TLC also supports Maru which works directly with homeowners who qualify for free insulation and heat pumps, ensuring homes across the region are warmer, drier and more energy efficient.

What makes up an energy bill[1]

We collect the money needed to operate a safe and reliable network, and to repair and maintain our assets through lines function prices charged to customers on our behalf, by their retailer.

TLC delivery prices are made up of three components; our distribution charges, what Transpower charges us to use the national grid and other pass-through and recoverable costs. Combined, these make up around 39% of a total electricity bill. The other 61% is made up of retailer charges including generation costs and GST.

TLC Discount

For eligible WESCT Customers, the TLC Discount payments will be paid in May and December, as follows:

  • May 2023 – based on price plans and electricity usage between 1 November 2022 and 31 March 2023
  • December 2023 –based on price plans and electricity usage between 1 April and 31 October 2023
  • May 2024 based on price plans and electricity usage between 1 November and 31 March 2024

More information

You can find more information about our pricing strategy and roadmap, pricing schedules, annual price-setting compliance statement, pricing methodology, and discount rules here.

[1] https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/energy-statistics-and-modelling/energy-statistics/energy-prices/electricity-cost-and-price-monitoring/

For more information contact