The Lines Company chief executive Mike Fox. Photo: Supplied.
FROM April 1, The Lines Company (TLC) will raise its component of power bills by 9%, but the cost of late-night power use will fall by about half.
Last year, the Commerce Commission told TLC to reduce its revenue, meaning lines charges for customers stayed largely the same, but TLC chief executive Mike Fox said inflation had now caught up.
“Over the last two years, we’ve barely been able to keep up with cost increases and we’re not alone in that.
“We’re now in a position where we have to pass some of those costs on so we can continue to provide a safe and reliable service across the network,” he said.
“TLC charges make up only around a third of power bills – more than half of the bill comes from retailers.
“Still, in the coming year, once you shake everything out, we expect average households will see an increase in TLC costs of about 9%.
“We want to be transparent about that.”
TLC is doing what it can to smooth the impact, particularly on vulnerable customers.
From April, it will reduce off-peak (11pm-7am) delivery prices by 56%.
“Our network is not used as heavily off-peak, so we’ve made it even cheaper during that time,” Mike said.
“We’re encouraging people to use appliances – especially ones you can put on a timer – overnight.
“Customers should also talk directly to their retailers about any off-peak deals they offer.”
Mike said it was worth checking out the independent website, www.powerswitch.org.nz
Meanwhile, TLC is also about to boost its annual electricity discount, paying out a total of $5.2 million, compared to $4.3 million paid last year.
The money is paid to beneficiaries of TLC’s shareholder, the Waitomo Energy Services Customer Trust and the first payment from the increased discount will be paid out before Christmas.
What each customer receives will be based on their price plan and TLC’s billing between April 1 and October 31 this year.
Mike said the boosted discount was a 21% increase on the previous year.
Of the $5.2 million, $500,000 came from the successful sale of TLC’s metering business, Influx, in June 2023.
“I’m very pleased the discount is going up at a time when we know some people are doing it tough.”
