electricity prices effective from 1 april 2024

Pricing Disclosure pursuant to Electricity Distribution Information Disclosure Determination 2012 (consolidated 2021). 

Vector’s line charges include the cost charged to Vector by Transpower for delivering electricity across Transpower's national grid to Vector’s network and the price relating to the cost of delivering electricity across our distribution network. Generally, we bill our line charges to electricity retailers. Electricity retailers then bill you. The line charges electricity retailers charge you may not be the same as what we bill your electricity retailer.

Our annual price changes are limited to that required to achieve the net allowable revenue prescribed by the Commerce Commission in its Electricity Distribution Services Default Price-Quality Path Determination 2020 (DPP) plus changes in pass-through and recoverable costs (e.g. Transpower transmission charges, council rates, statutory levies and other regulatory allowances) and a revenue wash-up from any under or over-recovery from previous pricing years. The transmission component of our charges is approximately 27% of our total line charges. 

 

Price change

From 1 April 2024, our total line charge prices are increasing by an estimated weighted average of 8.6%. 
The increase is the result of:
•    Inflation and revenue wash-up impacts (impact 8.4%)
    o    Pricing in the Commerce Commission’s 2% forecast; and
    o    Recovering previous period revenue under recoveries arising from volume shortfalls and inflation factored into prices being lower than actual outturn inflation. 
•    Pass-through costs (+0.9%)
    o    Increase in forecast transmission charges; and
    o    Increase in forecast council rates and statutory levies. 
•    Volume forecast impact (-0.7%)

 

Pricing structure changes

Vector’s price structure changes effective 1 April 2024:

·        Residential ICPs

      o   Low usage residential ICPs fixed daily line charge adjusted to reflect amended regulations,

·       Commercial ICPs

      o   Continue to transition the alignment of prices between the Auckland and Northern networks  
 

For further information on our pricing methodology used to set prices, see www.vector.co.nz/about-us/regulatory/disclosures-electricity/pricing-methodology.
For a full description of our line charges and how they are applied, see www.vector.co.nz/personal/electricity/about-our network/pricing or www.vector.co.nz/business/electricity/about-our-network/pricing.

The following tables are a summary of Vector's Northern and Auckland electricity network line charges. All prices are exclusive of GST.