Northpower increases electricity retailer charges

Northpower line charges to electricity retailers will increase

Line charges to electricity retailers supplying customers on the Northpower network will increase from 1 April 2010. The increases vary according to the type of connection and the annual consumption but, for the average domestic consumer (8000 units per annum), the increase will be around $2 per month.

How and when this increase is passed through to electricity consumers is entirely at the discretion of the electricity retailers such as Meridian, Genesis and Mercury. Some electricity retailers have reported profits that may enable them to absorb this small increase in charges from Northpower.

Northpower’s General Manager of Networks, Richard Dempster, said “It is essential that Northpower’s line charges keep pace with Consumer Price Index (CPI) to ensure Northpower has sufficient income to maintain and renew the Northpower electricity network. Purchase costs for key components of electricity networks such as transformers, substation equipment and wire have increased in recent years due to world-wide demand for this type of equipment in established and emerging economies. Failure to keep up-to-date with maintenance and renewal programmes would lead to decreased reliability of the network.”

Mr Dempster went on to say “Northpower’s Network Management team is constantly developing and refining the techniques for managing the electricity network to maximise the effectiveness of the capital and operating expenditure.”

Northpower still remains relatively well priced in comparison to other North Island Lines Network companies. We are proud to be locally owned returning millions of dollars to consumers through line charge holidays and distributions from the Northpower Electric Power Trust (NEPT).

ENDS

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