HOW YOUR ELECTRICITY BILL IS MADE UP
For every dollar the average consumer spends on electricity, approximately 29 cents goes to Powerco to maintain and upgrade your local distribution network. Electricity bills are made up of other components as shown in this chart*.
Government regulation controls the amount we can charge customers for our services. Powerco is currently allowed annual price increases of no more than the rate of inflation. As our network ages, we may need to invest more to maintain current quality levels. This may lead to price increases greater than the rate of inflation. If this is the case, we will be required to consult customers and obtain Commerce Commission approval. Because companies operating in the generation and retail sectors have competitors, the energy component of your bill is not controlled by regulation.
* Source: MBIE Electricity Price Comparison for Domestic Consumers Feb 2014.
Calculations are based on an 8000KWh residential consumer on Powerco’s networks.