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

 


New Report Tracks Electricity Distributor Trends 2008 –2011

Media Release
Issued 30 January 2013
Release No. 59

New Report Tracks Electricity Distributor Trends 2008 –2011

A new report from the Commerce Commission gives consumers information on how well their local electricity distribution business is performing.

The report, Electricity distributors’ performance from 2008 to 2011, covers key aspects of performance of interest to customers, including revenue, demand, service reliability and expenditure on the network. It shows trends and comparisons across the industry as a whole, and for the 29 individual businesses.

The industry trend was for increases in revenue, total expenditure and demand, but there was wide variation across individual distributors. Overall reliability of services was largely unchanged.

Commerce Commission General Manager Regulation, Dr John Hamill, said that total revenue across all 29 distributors had increased by 5% above inflation over the four years.

“What we have seen over 2008 to 2011 at an industry level is that electricity distribution prices have increased, though again, there is wide variation among distribution businesses,” said Dr Hamill.

Dr Hamill said that some of the increase in revenue for the industry was due to increasing demand for electricity distribution services, but it was mostly due to prices increasing for reasons such as the need for investment in the network and increased operating costs.

Dr Hamill said that a recent price reset for the 16 distributors subject to price-quality regulation was not covered in the new report as it fell outside the 2008 to 2011 time period.

The overall trend for electricity outages across the industry had not changed over the three year period, but reliability varied widely between businesses.

“Some distributors had a significantly larger number of outages, and a significantly longer duration of outages than others,” Dr Hamill said.

Total expenditure in the electricity distribution industry increased faster than inflation from 2008 to 2011. Operating expenditure grew 6% over and above inflation from 2008 to 2011 while capital expenditure grew 8% above inflation over the same period.

“The Commission’s role is to summarise and analyse the information provided by distribution businesses to give transparency about how they are performing,” said Dr Hamill. “We hope that reports like this will provide useful information for the distributors and their stakeholders to keep improving business performance.”

All information in the report is publicly available, but this the first time it has been brought together in one document.

A copy of the report, including links to individual distributor chapters, is available on the Commission’s website. http://www.comcom.govt.nz/electricity-distributors-performance-from-2008-to-2011/

Background

There are 29 electricity distribution businesses in New Zealand. Distributors transport electricity to homes and businesses. Distribution charges account for around a quarter of a typical household bill. Part of their charge goes towards maintaining and investing in the network.

The Commission regulates electricity distributors under the Commerce Act because there is little or no competition in this market. The Commission’s regulation aims to ensure there is an appropriate balance between providing incentives for suppliers to invest in their regulated services, and ensuring that their prices are aligned with the cost of services they provide.

All electricity distributors are subject to information disclosure regulation, under which they must publish information such as prices, measures of quality, financial information, plans for managing and investing in their assets, and forecasts of future expenditure (including investment planned in the network). In 2012 the Commission set new information requirements for all of the distributors.

Price-quality paths are regulatory controls for electricity distributors that do not meet the definition of consumer-owned set in the legislation. Seventeen electricity distributors are subject to price-quality paths.

The Commission reset the default price-quality paths for 16 electricity distributors in November 2012 with new price limits taking effect from 1 April 2013. The remaining 12 distributors are subject to information disclosure only.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news