HOW YOUR ELEC­TRIC­ITY BILL IS MADE UP

Matamata Chronicle - - Happy New Year -

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.

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