✨ Electricity Pricing Methodology




9 DECEMBER NEW ZEALAND GAZETTE 4679

4.1.4 The urban customers connected to The Power Company Network are located in Invercargill, Gore, Winton, Te Anau and Mataura. The boundary between the urban and rural customers is at the point in the Network coincident with the outer most quarter acre section. Small rural towns were not included in this category as the number of inhabitants in the urban area had to exceed 3,000.

4.1.5 The isolated rural customers were those customers connected to The Power Company Network who were at least 5 km further down the line than the nearest connection within the zone of rural average load density.

4.2 ELECTRICITY INVERCARGILL LIMITED

5.2.1 All the distribution costs in the Electricity Invercargill area were averaged over the city and Bluff and allocated across all the customers using the same parameters as The Power Company.

  1. FIXED CHARGES

5.1 All the corporate, metering and System Control costs were allocated on a charge per connection to the network.

5.2 There is an extra cost allocated to customers over 100kVA to allow for enhanced metering which will provide maximum demand kVA plus the energy usage in the required time zones for those consumers who will have individual charges within the next two years.

5.3 There is also a surcharge for multiple metered installations connected to one point of supply on the distribution network and prepayment key meters.

  1. LINE CHARGES

6.1 The derived line charges were then divided into fixed and variable components on an approximate overall 50:50 split. To enable a uniform variable rate, this ratio varies for customers who do not have automated time of use metering. The variable rate is based on daytime energy consumed thus maintaining an incentive to better utilise the network at night.

6.2 The charges derived through the above methodology and the charges approved by the Board are shown in the attached tables.

LINE PRICING METHODOLOGY
MW/PLB/LPM-0117 Page 4 of 5



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✨ LLM interpretation of page content

🏭 PowerNet Line Pricing Methodology for Power Company and Electricity Invercargill Limited Networks (continued from previous page)

🏭 Trade, Customs & Industry
Line pricing, Transmission charges, Distribution costs, Subtransmission, Energy costs, Urban customers, Rural customers, Fixed charges, Variable charges, Metering costs