Flick Electric Co. welcomes the EA's proposed changes

Flick Electric Co. welcomes the Electricity Authority’s proposed changes to transmission pricing

Flick Electric Co. is supportive of the Electricity Authority’s (EA) announcement today which outlines their proposed changes to the guidelines that set the transmission pricing methodology (TPM).

“We think any move to better reflect the costs of supply to the end-user will help New Zealanders better understand the electricity system.

“New Zealand needs to make some big investment decisions over the coming years and consumers should be the only ones voting on what we do, so knowledge is critical,” says Flick Chief Executive, Steve O’Connor.

The costs associated with access to the national grid, managed by Transpower, make up about 10 per cent of the average household power bill. Under the current methodology, South Island generators have been paying a relatively higher cost of transmission pricing.

The EA’s announcement today has signalled a more transparent and fairer overall allocation of electricity transmission costs. Under the EA’s preferred option, lines companies in the South Island will likely see a reduction in the transmission charges from Transpower from 2019.

In line with its pass-through model Flick would immediately reflect any change in South Island network companies’ pricing on customers’ bills.

“While there’s still a lot of water to go under the bridge, we believe the EA has moved in the right direction. The EA’s preferred approach will really shine the spotlight on where and how we need to invest in technology to ensure a secure and low cost energy future,“ says O’Connor.

ENDS

© Scoop Media