The Lines Company's charging regime has been subject to a bitter dispute between residents and businesses. Photo/File
The Lines Company's charging regime has been subject to a bitter dispute between residents and businesses. Photo/File
A change to time-of-use pricing for customers of The Lines Company has been given the green light.
But one of the customers who trialled the new system is unimpressed, saying his charges would have gone up under the new system, not down.
The decision follows a comprehensive review of TheLines Company's current service-based pricing, several independent reports and extensive consultation with the community since late 2016, including a first round of in-market testing.
The Lines Company's charging regime has been the subject of bitter dispute between residents and businesses in its distribution area, which includes Turangi.
Customers say it unfairly penalises them year-round for short periods of high use over the winter months.
The Lines Company chief executive Sean Horgan says the board's goal is to give customers a simple, fair and transparent pricing system and it is committed to providing that through time-of-use as the approach that meets those objectives.
Under a time-of-use pricing system customers' bills for lines charges are based on the amount of energy used and the time of day a customer uses that energy.
Time-of-use pricing is used by other networks in New Zealand, with prices falling into three customary periods - peak, shoulder and off-peak. The different prices for the three periods provides customers with the opportunity to manage their costs while supporting the efficient use of network assets.
The next stage of the pricing project, including preparing customer information, educational material, staff training and continuing to test internal systems to support the change.
"Our time-of-use trial with customers will also continue. Its purpose has always been to test our systems and processes and it's been doing just that," Horgan said. "The testing process has meant practical improvements are being made based on their feedback. This is something we will continue to do."
Tokaanu resident Alasdair McNab was invited by The Lines Company to be a participant in the time-of-use trial, having the option to either receive a mock bill to show how his usage would be charged, or to be billed for a month in the new pricing.
Tokaanu resident Alasdair McNab says he has questions about The Lines Company's proposed new pricing regime.
He chose the mock option, and was surprised when the invoice showed an increase in charges.
"The invoice was almost double what I pay now, and there are new charges on there, so I've now got a lot of questions about the new pricing."
McNab said he had been in touch with The Lines Company, but is still waiting for answers about extra charges such as increased meter hire costs.
"We're being told we'll be charged more fairly, but it feels like we're not getting all the information we need to know. The Lines Company have an obligation to come clean with customers about exactly what they're planning on doing with charges."
Turangi-Tongariro Residents' Association chairwoman Sandra Greenslade said after 10 years of fighting with customers, it was pleasing to see The Lines Company paying attention to pricing concerns.
"I think the move to time-of-use pricing is wonderful news, especially as it shows they are finally listening to their customers and doing something about their concerns.
"While we won't be able to calculate if we're paying less until about a year on the new pricing, the main thing is that we're incurring a charge one month and paying it the next."
