New Zealand’s Four Largest Electricity Distributors Offer Businesses Payment Deferrals

New Zealand’s Four Largest Electricity Distributors Come Together To Offer Businesses Payment Deferrals During COVID-19

Electricity lines companies Orion, Powerco, Vector and Wellington Electricity serve 60% of New Zealand’s electricity customers. The group has worked together to provide network payment deferral programmes to business customers on their networks.

The four companies are conscious that the restrictions posed by the COVID-19 Alert Level 3 and 4 status put financial strain on many of their business customers.

All four of the lines companies are proposing payment deferrals of at least three months to assist with immediate customer cashflow challenges that businesses are experiencing during this time. Details of each of the deferred payment options are being finalised in conjunction with the energy retail companies, but may include for example, a deferral of fixed line charges. It is up to each retailer to take up this offer and pass it on to its business consumers.

The group spokesperson, Simon Mackenzie, Vector Group Chief Executive, says: “This is a challenging time and all four companies are committed to supporting New Zealand businesses to ease their financial burden where possible, so that they can continue to make valuable economic and social contributions to the communities in which they operate - now and into the future.”

This decision is in addition to reductions across all four companies’ prices and revenues for all connection types as a result of the 1 April price reductions, which ranged from 4-15%. Retailers make the decision whether they pass this through to customers or not.

• Due to different network pricing options and business connection classifications, not all business connections will be provided support.
• For further details, business owners should contact their electricity retailers who are responsible for billing customers and passing through the offerings of each electricity distribution company.
• For Vector, key terms of the price deferral offer are: a) That retailers pass the deferral through to their consumers b) retailers to defer their own charges for customers on a similar basis c) that retailers support Vector to secure a similar deferral in transmission charges.
• Powerco's offering is not conditional on any requirement for other parties to match its deferral offering
• Please note that retailers are responsible for direct-to-customer billing and relationships.

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