New off-peak tariff

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

Most households can expect a small drop in their power bills this year.

But high users will see small rises after lines company Eastland Network announced its new pricing.

Eastland Network also revealed it is offering Time of Use tariffs for all residential customers with a communicating smart meter, which can save them money if they shift more of their power usage to off-peak times.

The company says from April 1 the majority of its residential customers (72 percent) across Tairawhiti and Wairoa will notice a small reduction to distribution prices on their power bill.

However, 15,000 customers on the low fixed charge domestic tariff, who use less than 8000kWh a year, would see on average a 2.8 percent decrease.

The 5000 customers on the standard domestic tariff (high power users of over 8000kWh a year) would see an average increase of 4.5 percent.

Transpower's transmission prices remain almost the same, with a 2 percent decrease for 20,000 residential customers and small businesses, and no change for everyone else.

After four years of planning, Eastland Network would roll out a new Time of Use tariff structure, said general manager Jarred Moroney.

“We have long focused on ensuring simple pricing structures and stable distribution prices, providing a secure power supply for the region at a reasonable cost,” he said.

“Our pricing is regulated and we review it annually. The Electricity Authority requires that all electricity networks across the country ensure distribution charges are as cost-reflective as possible.

“Like many other networks, we are now introducing a Time of Use (ToU) tariff. ToU better reflects the costs of electricity transmission and distribution, as high electricity places demand on the network during peak times.”

To take advantage of the ToU tariff, customers need to have a communicating smart meter and choose a suitable plan from their retailer.

Residential customers who don't have a communicating smart meter will not be disadvantaged.

Eastland Network has set a default tariff that reflects a standard energy consumption profile.

Mr Moroney said while the region's electricity usage continued to remain steady, Eastland Network must plan for the future.

“As customers change how and when they use electricity, interest in renewable energy like solar PV grows and the uptake of electric vehicles increases, we have to be ready to meet this demand.

“The new Time of Use tariff is one example of the future-focused strategy we're working on. It gives customers choice in how and when they use their power, and provides a lower tariff when this is off peak.

“If people are interested in moving to a Time of Use tariff, they should check with their retailer. They need to have a smart meter that can communicate consumption data at regular intervals, and choose a plan that passes our ToU pricing through.”

Along with developing its new long-term pricing strategy, Eastland Network has also completely updated its asset management plan — which identifies the most effective ways to allocate spending on asset maintenance and upgrades — and has further improved the network's asset inspection regime.

Eastland Network's revenues must not exceed a cap set by the Commerce Commission.

On average, Eastland Network's line charges make up around 30-40 percent of the total cost on an electricity bill, although this does vary depending on different retailer offers.

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

Eastland Network bills these line charges directly to energy retailers, and it incorporates these into each customer's power bill.

The remaining costs are determined by the retailers.