Line Charge Price Changes
Electricity Invercargill Limited (EIL) time-of-use (ToU) pricing for residential and general connections to retailers and their customers effective from 1 April 2024.
The way electricity is being consumed in New Zealand is changing. Increased uptake of smart appliances, electric vehicles, solar panels and decarbonisation is all affecting the way we use electricity. EIL is committed to ensuring customers have the best opportunity to take advantage of these changes with a method that it is fair to all customers.
We want our customers to have a choice about how and when they use electricity and the price they pay for it.
EIL invoices retailers (who send you your electricity accounts) for the use of our electricity network. We own and manage the assets that get power to your door – the poles, wires, transformers and substations. Our line charges are around a quarter of your overall electricity account. We also pass on Transpower’s charges, which are for using the national transmission network (often called the national grid). Transmission charges can vary between regions but are around 10% of your overall electricity account. Retailers then invoice customers for all electricity costs, and choose how to repackage the distribution and transmission charges into their pricing.
EIL’s ToU pricing means that the line charges will be lower at shoulder and night times. This is to better reflect the costs of electricity distribution and transmission. Peak times are 7am-11am and 5pm-9pm (Monday-Sunday), when high electricity use puts the most pressure on the local and national networks. Outside of these times is shoulder and night times, and the line charges are lower, ToU pricing offers you the ability to reduce your energy costs by moving some electricity use to non-peak times. It also means more options when using new technology such as solar generation, electric vehicles and battery storage. To take advantage of ToU pricing you’ll need a compatible smart meter, and your energy retailer to have a suitable pricing plan; line charges are only one part of the price you pay for electricity. Please contact your retailer to understand what options they may be offering.