Vector Announces Price Decrease for Electricity Distribution

Vector Announces Price Decrease for Electricity Distribution Charges

Auckland-based Vector, the country’s largest electricity distributor, today announced a decrease of 1.4% on average in its network line charges to take effect from 1 April 2019.

Chief Networks Officer Andre Botha said the company’s charges reflected its ongoing commitment to providing a resilient and reliable network at the best cost to all consumers.

In 2018, electricity distribution charges – the costs Vector is responsible for – accounted for 26% of the average residential consumer’s electricity bill. Together with pass-through charges of 15%, what are often referred to as “lines charges” accounted for 41% of the average residential consumer’s bill. Pass-through charges include Transpower’s transmission charges, statutory levies, council rates and various regulatory adjustments.

“Unfortunately, we know from the government’s Electricity Price Review that some consumers are paying higher power bills than they need to as a result of being on the wrong plan, often in relation to the low-use fixed charge tariff. That’s consistent with our observations too, and so we recommend customers take this opportunity to check they’re on the lowest-cost plan for their needs,” Mr Botha said.

The average Aucklander’s residential power bill was approximately $160 per month, with $41.60, or $1.37 per day, being distribution charges payable to Vector.

There are several online resources available to consumers to help compare retail electricity plans such as powerswitch.org.nz and whatsmynumber.org.nz.

ENDS

© Scoop Media