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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news