Vector today announced increases to its electricity line charges effective from 1 April 2010.

Vector Chief Executive Simon Mackenzie says the average line charge increase of 2.3% across its electricity networks will result in an average increase of approximately $1.80 per month for residential customers.

The increase, which is less than the annual inflation rate of 2.5%, is in line with the price threshold regime set for all electricity lines companies by the regulatory agency - the Commerce Commission.

Some commercial customers will see increases above the rate of inflation due to the finalisation of rebalancing requirements.

Mr Mackenzie says Vector worked with the Commerce Commission and electricity retailers regarding the way in which electricity lines charges have been set.

“These price increases contribute to the ongoing maintenance and investment in our electricity networks.

“Our commitment is to ensure the reliability and safety of our network as well as taking account of the interests of our shareholders,” Mr Mackenzie says.

Electricity lines charges are reviewed annually and include direct pass through costs of $139m from Transpower, local government rates, Commerce Commission levies, and Electricity Commission levies, which have also increased from last year.

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