Business as usual as new owner takes over network

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Some electricity users could see power bills drop after lines company Eastland Network set its last pricing cycle before going under new ownership.

Eastland Network is the regional lines company for Gisborne, Wairoa and the East Coast. Each year, as part of the regular pricing cycle and to comply with regulatory requirements, it sets its pricing for the coming 12 months.

“With Firstgas Group becoming the new owners of the Network on March 31, this process is business as usual,” said Eastland Network general manager Jarred Moroney.

“The pricing has already been set and advertised and is up on our website, as per the regulations.

“The annual prices will come into effect on April 1, 2023, as planned. Overall, the majority of customers can expect very little or no change to the Network portion of their power bill, which covers transmission and distribution of electricity.

“The regulations that apply to the Network mean there are ongoing protections for local consumers around price and quality of supply, and these continue under our new ownership.

“The only difference will be our name, which is changing to Firstlight Network.”

As was the case last year, the 2023 pricing reflects the Government’s gradual phasing out of low fixed electricity pricing plans; a slight year-on-year reduction in Eastland Network’s allowable regulated revenue; some updates to methodologies used; and increasing power usage in the region.

Tariff charges for the pricing period will reduce overall by 1.3 percent, with varying movements across the customer categories.

For all domestic customers, the fixed charge portion of Eastland Network’s line charges has increased 50 percent to reflect changes in government regulations.

However, to balance this, the variable charge portion has been reduced. As a result, most domestic customers will see their overall distribution prices stay effectively the same or drop slightly.

Five thousand customers are on the standard domestic tariff (high power users of over 8000kWh a year). The Network portion of their bill will reduce by an average of 3 percent, or $33 for the year.

Fifteen thousand customers are on the low fixed charge domestic tariff. The majority — 13,500 customers — will effectively have no change at all while the other 1500 will have an average increase of less than $3 a month.

Eastland Network has over 5500 non-domestic customers. Of these, small commercial customers will see their annual distribution charge reduce by 3 percent for the year.

Medium commercial customers will experience a small overall rise of, on average, just under 5 percent.

Large commercial and industrial customers will have a range of changes to their pricing, with low users seeing increases to their distribution charges, while those with high consumption will see a decrease, ensuring pricing is more cost reflective.

Prices are strictly regulated and must comply with the Commerce Commission’s Default Price-Quality Path Determination requirements.

The Network’s line charges make up around 40 percent of the total cost on an electricity bill, although this varies depending on different retailer offers.

Lines charges are a combination of transmission charges, which are passed on from Transpower, and distribution charges.

The Network bills these line charges directly to energy retailers, and they incorporate them into each customer’s power bill. The remaining costs are determined by the retailers.

There are more than 20 electricity retailers to choose from in Tairāwhiti and Wairoa, and research shows that people who switch regularly can save more.

To find out the best plan, visit  independent website Powerswitch.org.nz