Northpower line charges will increase

Northpower line charges to electricity retailers will increase from 1 April 2011

Line charges to electricity retailers supplying customers on the Northpower network will increase 4.3% from 1 April 2011. The increases vary according to the type of connection and the annual consumption but, for the average domestic consumer on our network (6600 units per annum) the increase will be around $1.50 per month or $18 a year before GST.

If and when this increase is passed through to electricity consumers is entirely at the discretion of the electricity retailers such as Meridian, Genesis, Contact and Mercury.

Northpower’s CEO, Mark Gatland says “It is essential that Northpower’s line charges provide sufficient income to fund asset replacement and make improvements on Northpower’s 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.” “Northpower’s fibre optic broadband communications network in Whangarei is being built through a joint venture with Crown Fibre Holdings and the increases in line charges for the electricity network are unrelated.”

Approximately 21% of the line charges for Northpower’s residential and small commercial connections are paid to Transpower to fund the National Grid which is going through a period of extensive upgrading and augmentation.

Northpower remains committed to providing a safe reliable hassle-free electricity distribution network at a reasonable price. Northpower is 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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