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Northpower Line charges for Energy Retailers

Line charges for Energy Retailers operating in Northpower’s network will increase from 1 April 2004.

Northpower has increased its overall network charges by 2%. Transpower’s transmission charges have increased by 12%. The other change is a 0.1 cent /kWh reduction due to the removal Frequency keeping charges as the new Electricity Commission will now charge these directly to Energy Retailers.

The impact of the changes on electricity prices is unpredictable because Retailers do not have to directly pass through line charges. However, if the new charges were passed through at cost, an average domestic customer would see a $2.15 increase in their monthly electricity bill.

Northpower’s network charge increase is less than the amount allowed to Northpower by the Commerce Commission under the Price Threshold Regime determination issued by the Commerce Commission in 2003.

Northpower Chair, Warren Moyes said that Northpower has an outstanding track record of being efficient with no line charge increases for six years and many millions of dollars returned to customers through line charge holidays. However, the company also needs to ensure prices and returns do not fall below accepted commercial rates. Unfortunately the increased regulation of the industry is adding significant complexity and cost to Northpower’s lines business.

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