Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Nelson Mail Item Re Price Increase Misleading


Nelson Mail Item Regarding Price Increase Misleading

An item sent to NZPA by the Nelson Mail yesterday claimed that TrustPower's latest price increase in that region, which takes effect as from 18 June, was the second price increase in a year. This is not correct.

The last increase appeared on customer bills processed as from 25 July 2002, but because it was a "flat" increase, it effectively applied to electricity consumed as from 11 June 2002.

Later last year TrustPower changed its system of applying price changes from a "flat" basis to a "pro-rated" basis. This means that the change now applies to ELECTRICITY USED from the date of the price increase. This change was made in response to requests from customers for a more equitable system of introducing price changes.

This means that Nelson customers have NOT had two price increases in the last year.

TrustPower has a policy of reviewing its prices annually on a region by region basis, unless there is a reason to change that, such as an out of schedule change in line charges that breaks that cycle. Where that occurs, the reason is clearly outlined at the time of the price change announcement. In some regions, these TrustPower's price reviews have actually been delayed,. This has been because of the pressure of work involved in processing price changes made necessary by changes in line charges that have occurred elsewhere, thereby forcing the review to be pushed outside the usual TrustPower r12-month cycle.

Apart from in regions where there have been changes in line charges, e.g. Central Otago, TrustPower's price increases have simply been reflecting increases in long-run wholesale electricity costs, and to a minor extent, a small increase in retail overheads and costs. They have absolutely nothing to do with current high spot market prices, because electricity for residential and small business customers is not purchased or sold on that basis, and the increases have nothing to do with the current electricity supply situation.

The TrustPower annual regional price review process has, in TrustPower's view, the effect of giving consumers more certainty than doing so on a more irregular basis.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Dry: Beef + Lamb Launches Drought Resources

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period. More>>

ALSO:

InternetNZ: Net Neutrality Failure In US "Will Hurt All Users"

InternetNZ Chief Executive Jordan Carter has condemned the decision by the United States communications regulator to undo 2015 open Internet rules, warning that all Internet users will end up worse off as a result. More>>

ALSO:

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>