It takes more than just Powershop to get electricity to your property. There’s a whole supply chain and everyone’s responsible for doing their bit. And to do their bit they have to charge us (and ultimately you) to do it.
From power stations throughout New Zealand, generating companies like Meridian Energy sell electricity on to retailers like us through the wholesale market.
Transpower owns and operates the national grid and is responsible for the transmission of power from generators to the regional networks for distribution. Your local lines company (e.g. Vector) then distributes power to your property. The charges from lines companies include costs for both transmission and distribution.
There are heaps of different types of meters that measure how much power you’ve used. In New Zealand, meters are generally owned and managed by metering companies, and leased by retailers.
Even though there’s no retailer quite like Powershop, we still buy wholesale power and sell it on to you. It’s just that Powershop adds in proper customer service, and loads of useful information and helpful tools.
The Electricity Authority is responsible for the regulation of the electricity industry. Policy and governance is managed by the New Zealand Government and several Crown entities.
All retailers pay government levies to cover the cost of governance.
Your price reflects all the costs incurred by the various parties in the electricity supply chain. It varies between customers depending largely on factors like where you live and how much power you use.
We keep a slice of what you pay us to cover our operating costs (like our friendly Customer Service Centre and the crew that work behind the scenes) and then we use the rest to pay for power from the generator, transmission and distribution charges from your local lines company, metering, GST and government levies. Here’s roughly how the money customers give us gets spent:
Every year, everyone involved in the supply chain reviews their costs and decides what to charge power retailers like us. Changes in those charges often lead to movement in the prices paid by power users like you.