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Pricing - FAQs

Ever wondered how pricing works? Why you are charged what you are? What lines charges actually cover? Read on...

Pricing - FAQs

What are lines charges?

Lines charges pay for the electricity network that delivers electricity to your home or business.

TLC owns and looks after the poles, lines, transformers and systems that carry electricity from the national grid (Transpower) – the larger pylons to your homes and businesses across our region.

Our role is to make sure the network that delivers power is safe, reliable and available whenever you need it. Think of the electricity network like a road; we don’t charge you for the cars or trucks on the road, nor the things you carry in your vehicles. We just provide the ‘road’ to get your electricity from where it is made to your house.

How are lines charges different from the cost of electricity?

Electricity (the energy you use) is sold by your retailer. TLC doesn’t sell electricity — we maintain and operate the infrastructure that delivers it. Our charges are embedded throughout your retail bill. Depending on retailer, it is sometimes not easy to see exact lines charges. Estimates can be calculated here.

If I use very little power, do my lines charges decrease?

Even when your electricity use is low, the network still needs to be there – ready to deliver power instantly when you turn something on. Most of the cost of running an electricity network is fixed. Poles, lines, transformers, safety systems and crews must be maintained year-round, so every connection stays safe and reliable.

Your lines charges are your contribution to keeping that shared network available, just like roads or water pipes that must be maintained whether they’re used a little or a lot.

There may be a decrease to the variable charges of your bill, but not to the fixed portion.

What is TLC’s core job?

Our core job is to build, maintain, replace and operate the electricity distribution network in your region. That network must be ready at all times, even if your electricity use varies.

Can I choose a different electricity distribution business?

No. You can choose a retailer. The Lines Company is not a retailer. We are an electricity distributor.

Like other lines companies across the country, TLC is a natural monopoly. TLC owns the only set of power lines in your area. It wouldn’t make sense to build multiple duplicate networks because infrastructure is expensive and complex. Because customers can’t pick another distributor company, TLC is regulated by the Commerce Commission and the Electricity Authority. These regulators monitor our performance, set rules about revenue and standards for the quality of service that TLC must meet. Also, Utilities Disputes Ltd is a free, independent dispute resolution service for consumers that oversee electricity and gas, water and broadband installation services.

I own a holiday home. Why are my lines charges so high?

Holiday homes often use a lot of electricity over short periods, such as during peak holiday times, certain seasons or weekends.

The local electricity network must be designed to support this peak demand at all times, even when the property is empty for long periods.

As a result, pricing reflects capacity required to keep the connection available and reliable rather than total annual electricity use alone. Costs are shared fairly based on how different connections place demand on the system. It’s the same as the road network, we all pay for the State Highways and local roads, regardless of how much time we spend in the car driving around, using the roads.

Why do electricity bills include fixed charges?

Fixed charges exist because most of the cost of running an electricity network doesn’t change with how much electricity you personally use. The expensive parts — poles, wires, transformers, safety equipment, control systems, and the people who maintain them — need to be funded year-round to keep your connection reliable.

Think of fixed charges as your contribution to keeping the network available whenever you need it. They cover things like:

  • Maintaining and replacing poles and lines
  • Upgrading aging equipment
  • 24/7 fault response and customer support
  • Meter equipment and billing systems

Is there a connection between lines charges and electricity use?

There is some connection – but it is very limited. Even if you use very little electricity in a month, the network must still be maintained so power is available when you need it. Fixed charges help ensure the network stays safe, reliable and ready — just like paying a set amount for roads, water or wastewater infrastructure.

Electricity doesn’t just appear at our homes — it relies on a network of poles, lines, transformers, and systems that must be ready to deliver power every minute of the day, even when usage is low. This ‘always on’ network is what keeps our lights turning on instantly, our hot water heating when needed and our appliances running smoothly.

Electricity infrastructure is similar to other essential networks we rely on every day. Roads don’t shrink overnight when fewer cars are using them, and water and wastewater pipes must be maintained whether you use a little or a lot. In the same way, the electricity network must be built and maintained to support everyone, no matter how much power each household uses.

How are TLC’s prices set each year?

Each year, TLC calculates the revenue required to operate, maintain and upgrade the distribution network within the rules set out by regulators. This includes maintenance, vegetation management, emergency response, compliance and system upgrades. Prices are then allocated to different customer groups based on their usage of the network.

Why do prices change?

To protect consumers, the Commerce Commission limits the amount of revenue that Transpower and non-exempt lines companies can earn for a set period (typically five years). New limits applied from 1 April 2025 and will be higher due to several factors. The Commerce Commission has some great information on how lines charges impact electricity bills. Follow link here:

What is a pricing code?

Your pricing code consists of your customer group, the type of meter you have, the power usage or capacity supplied, property density and the type of water heater. More is explained on this page here.

Why do different customers have different pricing codes?

Different connection types have different demands on the network. Factors include:

  • Whether your electricity supply has controlled (normally hot water) or uncontrolled
  • Whether you have a standard residential connection or need a higher capacity supply
  • Whether your property uses time‑of‑use or flat‑rate charging
  • Connection size and load characteristics

Can my pricing code change?

Yes. It may change if:

  • Your connection capacity is upgraded or downgraded
  • You add major appliances like EV chargers
  • You install solar or batteries
  • Your use changes from residential to another type of use such as a holiday home, a business, etc.

If you think your code is incorrect, you can request a review.

What makes up TLC’s lines charges?

Depending on your pricing code, your charges may include:

  • A daily fixed charge
  • A variable charge (per kWh or time‑of‑use)
  • For customers who need > 150 kVA, capacity‑based and dedicated asset charges

Why hasn’t my lines charges dropped even though I used less power?

TLC maintains and upgrades the network that gets electricity to your house. This is charged as a fixed price and stays the same, regardless of how much electricity you use.

Why do different distributors across the country have different prices?

Every electricity distribution business (EDB) is different. TLC’s region has:

  • Low customer density (fewer customers per kilometre of line)
  • A long, geographically challenging network
  • Lacks dense urban centres
  • Complex terrain and weather exposure
  • High maintenance requirements relative to customer numbers

These factors mean that the cost per customer can be higher compared to more urban networks.

What is changing on 1 April 2026?

TLC is updating its prices across customer groups. Individual bills may increase or decrease depending on a customers’ usage profile and pricing code.

Please visit our media release for the pricing change for 1 April 2026 here.

Does TLC offer support for customers experiencing hardship?

Yes. Support may include payment plans and referral to community energy‑hardship initiatives. Electricity retailers have access to help for customers on low fixed charges pricing plans. Contact us directly to discuss your situation.

Does being community owned impact pricing?

Community ownership means that profits are returned to the community. Because we are community-owned too, we have a long-term view meaning we reinvest into the network and region to make our network stronger and more reliable, not just for today’s customers but for customers of tomorrow. Some customers may also be eligible for a TLC discount. It also means we can smooth pricing increases over several years.

Will installing solar and/or an EV charger affect my lines charges?

Generally, no. While customers are connected to the network, lines charges apply – including fixed prices.

We are continuing to increase fixed prices, and variable kWh prices may eventually go. So, eventually, there will be little to no savings from the distributor or transmission component of the bill. Having said that, we have introduced an injection rebate for electricity injected into the network at peak times. This is intended to be in constrained areas, but for now it is network wide.

Short story is – distribution pricing is not intended as an incentive for solar installation. The benefit comes from the wholesale electricity market ie, electricity generation.

How do reliability improvements influence prices?

Upgrading and maintaining the network — including replacing aging assets, managing vegetation, and strengthening resilience — affects overall cost and therefore pricing.

How does TLC decide where to invest?

We prioritise safety, reliability, growth areas and assets that pose risk if not replaced.

What is happening to Low Fixed Charge (LFC)?

The government decided to phase out this regulation, and it finishes on 31 March 2027. TLC is looking at options for pricing from 1 April 2027.