Outrageous Lines Charges Must Be Abandoned

Electricity charges in the western central North Island are unique in New Zealand. Nowhere else do consumers face the savage power price increases that have been faced by unlucky consumers in this area.

Many low-income and fixed-income consumers are turning their heating down, or off, worried that next year’s power bill might be $1000 or more higher. Grey Power is very concerned that this is affecting their health. Some Grey Power members are already cutting back on necessities such as food and doctors’ bills, just to pay last year’s huge power bills.

Research commissioned by the Ruapehu District Council and TLC’s minor share-holder has just confirmed that this pricing regime is unique in the world.

Other countries have pricing systems that give the incentive to reduce demand at peak times. Compared to those countries, The Lines Company (TLC) charges are both inefficient and unfair.

Efficient demand-meter pricing would allow the consumer to take action to avoid expensive peak-load power. TLC’s demand meters aren’t smart meters, they can’t even tell you the times when high demand charges are being imposed.

The research report describes demand charging as a “mystery load lottery”!

Fair demand-meter pricing would spread the TLC revenue requirements amongst consumers either evenly, or alternatively, according to each consumer’s demand on the system. TLC charging is unfair – nobody knows whether they might get the mystery bullet this year.

Grey Power calls on TLC to immediately abandon its demand charging regime and revert to normal tariffs. We recognize the need to constrain increases in peak demands, and are keen to consult on fair and efficient ways to do so.

ENDS

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