Prices are determined to ensure that EA Networks recovers its regulated revenue in order to operate a sustainable, reliable and efficient electricity network.
In simple terms we get our revenue from prices multiplied by a quantity. The quantity is generally capacity based (how big your electricity connection is) or volume based (how much electricity you use). Our focus is developing price structures that are equitable across the various customer types we have in our region (general supplies, irrigation etc).
The structure of our pricing is subject to regulations, where we must follow a set of pricing principles. Our charges are set within the Commerce Commission’s ruling on pricing, and we must publish pricing categories and charges, and our related methodology.
We are also required to re-focus our pricing when directed by the Government (such as changes to the Low-User Fixed Charges).
Our electricity delivery charges include the costs we pass on from Transpower, who maintain the national grid.