Powerco changes price structures

Ruapehu Bulletin, Volume 10, Issue 478, 23 March 1993, Page 15

Powerco changes price structures

Powerco has announced changes to its electricity tariffs which will take effect from Monday, 19 April. The changes are: the reduction in the fxxed line charge from $15.19 per month to $13.50 per month; the removal of the block of lower priced units; new unit rates. These changes have been driven by the deregulation of the electricity supply industry from 1

April this year, which requires that the present subsidy of domestic tariffs by non-domestic tariffs be removed. Last year a three-year programme to do this was announced and today's changes are the second year of this programme. The changes are revenue neutral. Powerco will not receive any additional profit from the changes to the tariff. It will receive some extra

revenue to cover the increase in the cost of electricity from Electricorp which is considerably less than the two percent quoted in the media. The effect on the charges will be that the cost of electricity to do- . mestic customers will rise between 80 cents and $2 per week. The average domestic customer using 7,000 units per year will see an increase of $1.13 per week.

All non-domestic customers will see reductions in their electricity accounts. The components of the tariff (energy charge, transmission charge and line charge) will be available from Powerco on 1 April. These tariff changes have nothing to do with the method of corporatisation of Powerco or its

establishment plan. They are part of the deregula-

tion of the electricity supply industry.