Electricity Information Disclosure

New line charges for the Coromandel, Thames and South Waikato regions.

Powerco’s new line charges effective 1 April 2018 Powerco is New Zealand’s second largest electricity and largest gas distribution utility with around 445,000 consumers connected to its networks. Our electricity networks are in Western Bay of Plenty, Thames, Coromandel, Eastern and Southern Waikato, Taranaki, Whanganui, Manawatu and Wairarapa. Our gas pipeline networks are in Taranaki, Hutt Valley, Poirirua, Wellington, Horowhenua, Manawatu and Hawke’s Bay. Powerco provides lines business activities to electricity retailers and invoices them for line charges. Retailers then invoice customers for supply of electricity inclusive of our lines charges. Accordingly, we cannot guarantee the line charges specified below are the line charges that retailers invoice to customers as retailers may choose to modify charges. For retail electricity prices please contact your retailer. Powerco’s distribution prices are increasing by 1.5% (on average) in your region from 1 April 2018. Our prices reflect the cost of providing distribution and transmission services to you and can change from year to year. The main reasons behind this year’s increase are:

• An increase in our distribution charges of 4.4%. This reflects the impact of our ‘Customised Price Path’, which involves us carrying out a significant programme of investment over the next five years to maintain the safety and reliability of our network

• A decrease to our transmission and other costs that we pass through of 6%. Total delivery charges are quoted including their transmission component unless otherwise stated. All charges exclude GST. Powerco is not required to disclose the line charges if the number or estimated number of consumers, by whom the lines charge is to be paid, is less than five. Other lines and use of system charges or conditions may also apply. For more information please refer to the full Powerco Pricing Policy on Powerco’s website at www.powerco.co.nz