Lower Transmission Charges Behind Aurora Energy Price Change

01 Mar 2018

Lower transmission charges are behind Aurora Energy’s annual price change effective 1 April 2018.

Aurora Energy’s line charges include the cost of distributing electricity to end-users across its network, transmitting electricity across Transpower's national grid, and industry levies.

Chief Executive of Aurora Energy Richard Fletcher said: "Across our networks, line charges have decreased by 2.8% overall. The decrease was driven mainly by lower forecast pass-through costs of transmission. Taking this into account, distribution charges are around 1.8% higher than the current year, in line with an annual inflation adjustment.

Mr Fletcher noted: "Line charges are included in the total power bill from customers’ electricity retailer and are just one component of the power bill. Each retailer decides how it will reflect changes to line charges in the amount electricity customers pay.

"The Commerce Commission regulates distribution prices, including Aurora Energy’s, to protect the interests of consumers, and sets stringent guidelines on both price and service performance. Under regulation, any change to Aurora Energy’s annual distribution charges is limited to inflation (the Consumer Price Index) plus changes in pass-through costs (these include Transpower transmission charges, local authority rates and industry levies).

"Aurora Energy has previously signalled a detailed plan to significantly lift the level of its investment in the networks serving Dunedin, Central Otago and Queenstown over the next decade to underpin future economic growth and wellbeing," said Mr Fletcher.

Aurora Energy 2018/19 price changes by pricing area

Pricing network

Change

Total Aurora Energy network

-2.8%

Queenstown
(includes Queenstown, Arrowtown, Glenorchy)

-4.9%

Central Otago
(includes Wanaka, Cromwell, Alexandra, Roxburgh)

-7.6%

Dunedin
(Dunedin City excluding Waitati, Waikouaiti, Strath Taieri)

+0.3%

Electricity pricing networks

 Pricing network map

See here for current pricing disclosures.