Northpower maintains the powerlines network in the Whangarei and Kaipara regions that Energy Retailers use to sell electricity to their customers.

We charge the Energy Retailer for using our Network, which ensures we have sufficient funds available to maintain and upgrade our powerlines network. The Energy Retailer can then decide whether they will pass on this cost to their customer.

Residential line charges - holiday homes and secondary places of residence

Northpower Limited seeks to ensure that each consumer pays their fair share of the distribution and transmission costs relevant to their premises. In the case of residential premises, these costs are largely the same regardless of whether the premises are used as a consumer’s principal place of residence or as a secondary residence - such as a holiday home.

Northpower has identified that the line charges for around 4000 holiday homes and secondary places of residence on its electricity network are effectively being subsidised by the line charges paid by permanent residents in Whangarei and Kaipara Districts. These holiday homes and secondary places of residence equate to around 10% of Northpower’s residential electricity connections.

On 1 April 2015, Northpower will introduce a line charge price category with a fixed charge of $1 (excluding GST) per day for domestic premises supplied from the Northpower network that are not a consumer’s principal place of residence. This new price category also has a lower charge per unit of uncontrolled electricity (a 25% reduction) than the corresponding price category for principal places of residence.

This new line charge price category will go some way towards rebalancing domestic line charges so that holiday homes and secondary residences pay closer to the real cost of providing the connections to the properties and maintaining the network.

Northpower invoices line charges to the electricity retailers (Meridian, Genesis, Mercury, etc) and not directly to consumers. Electricity retailers each determine how they will pass-through the changes in Northpower’s line charges to their consumers.

Electricity retailers will advise their customers of the specific premises that have been identified for transfer to the new price category. If customers believe that a premise has been incorrectly selected and is in fact their principal place of residence, they should contact their retailer with some evidence to support their claim.

If you have any queries we encourage you to talk directly to your electricity retailer in the first instance.