Aurora Energy is consulting on how the company proposes to develop its electricity distribution pricing to support electrification and a low carbon future, and the company is encouraging customers to have their say on their proposal.

The company has come under significant public criticism for its maintenance of power infrastructure, and increased line costs for customers.

Chief Executive Richard Fletcher says the company wants to reform its pricing approach, so it supports customers as part of New Zealand’s drive towards electrification and decarbonisation.

“We see NZ electricity networks as central to enabling customers to uptake and optimise emerging green technology and we are committed to ensuring our customers are empowered to do exactly that.

“We want to give customers choice about how and when they use electricity. 

“The goal is to develop efficient distribution pricing that makes it easier for customers to make choices about how they use the electricity network and make energy-related investments like solar panels, batteries and electric vehicles,” he says.

Changes are planned for the electricity distribution sector over the next five years, to move towards pricing that is more reflective of the costs incurred in providing electricity distribution services.

The main changes are likely to come from April 2023 and include phasing in a mix of prices depending on the time of day customers use electricity, changing the proportion of fixed charges so that overall charges are more uniform, and looking at a new option for how capital investment costs are allocated.

Aurora Energy General Manager Regulatory and Commercial Alec Findlater says the organisation is asking people what they think about the proposed changes now, even though some of them won’t be implemented until 2023. 

Alex says it is because Aurora wants “to make sure people understand why the changes are happening and what it means for them”.

“Aurora Energy’s distribution charges are only part of a customers’ total electricity bill, and we know that a number of electricity retailers don’t show a breakdown,” he says. 

“The distribution pricing changes we’re proposing can benefit customers, so long as they are able to see and react to new price signals.

“We know that some electricity retailers transparently pass through our charges, while others repackage them as they see fit. 

“The proposed changes we’re consulting on rely on either future prices being transparently passed on to customers and shown on their bills, or electricity retailers and flexibility traders developing innovative services to help customers manage their electricity demand.”

Alec says efficient distribution pricing is critical for the upcoming transition to a low carbon future that is “affordable for customers, while still providing a reliable electricity supply”.