New Zealand Gazette – 2004 – No. 139

Page 3450

✨ Electricity Governance Policy



3450 NEW ZEALAND GAZETTE, No. 139 29 OCTOBER 2004

13 The Commission should include the following matters in the contracts:

• transparency of charge components
• frequency of billing
• company-specific arrangements for dispute resolution
• arrangements for informing consumers about planned outages
• arrangements for the benefit of low income domestic consumers as described below.

14 When developing arrangements for domestic consumer contracts, the Commission should have regard to any provision by the Commerce Commission for distribution businesses to engage with local communities on the trade-offs they wish to make concerning price and quality and reliability of supply.

Low fixed charges

15 The Government has introduced regulations\7 to require retailers to offer low fixed charge tariff options of no more than 30c per day\8 to domestic consumers. These tariff options should incorporate the following design features:

• domestic consumers consuming less than 8,000 kWh/year must pay less on a low fixed charge tariff option than on any corresponding tariff option
• the low fixed charge tariff options are to be advertised in the same manner as existing tariffs
• the retailer must inform domestic consumers at least annually whether it may be beneficial for them to switch to a low fixed charge tariff option
• the low fixed charge tariff options need only be available for homes where consumers usually reside
• all retailers should make the tariffs genuinely available (subject to usual credit-worthiness tests), irrespective of the usage of the consumer, and
• tariffs with tiers below 8,000 kWh per annum (e.g. high c/kWh for the first 2,000 kWh per annum) are proscribed to ensure that the lower fixed charge offers genuine advantages to small consumers.

16 The regulations also require distribution companies to offer low fixed charge distributor tariff options (to retailers or direct to consumers) at a maximum of 15c per connection per day. Compliance with the low fixed charge policy will be measured both before and after any rebates or discounts. Any rebates or discounts must apply consistently to consumers regardless of whether they are on a low fixed charge or standard tariff option.

17 The Commission will be charged with monitoring and enforcing these regulations.

Arrangements for the benefit of low income domestic consumers

18 The Commission should develop arrangements and recommend regulations if necessary to ensure that:

• consumers who may have difficulty paying their bills on time have access to electricity (although in a way that does not require retailers to accept unreasonable credit risk)
• consumers have access to a mechanism to assist with budgeting if required
• consumers who have difficulty paying can avoid the costs of frequent disconnections and reconnections, and
• clear guidelines or standards exist for disconnections following non-payment.

\7 Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004, effective 1 October 2004.

\8 Excluding GST, but after any prompt payment discount is subtracted.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2004, No 139


Gazette.govt.nz — PDF NZ Gazette 2004, No 139




✨ LLM interpretation of page content

🏛️ Government Policy Statement on Electricity Governance (continued from previous page)

🏛️ Governance & Central Administration
1 October 2004
Electricity, Governance, Policy, Sustainability, Economic Growth