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More InformationNorthpower consumers to receive over $10m
Published 26 November 2019
Northpower electricity consumers will receive around $10.2 million thanks to Northpower and the Northpower Trust, an increase on the distribution consumers received in December 2018.
“We’ve lifted the amount and locked it in earlier this year so that our customers know what to expect. It’s all part of work underway to make things simple, and lift our contribution locally,” says Northpower Chief Executive Andrew McLeod, a point backed by Northpower Trustees.
Most residential and business electricity customers connected to Northpower’s network benefit from a discount of $220.80 inc GST in December 2019. The only exception to this will be those using less than 2,000 kWh per year, who will receive a discount of $63.25 inc GST.
The discount will be shown as a credit on customer’s December electricity bills. However, some retailers paid earlier than expected, so customers should check their November bill as well.
The Northpower Pricing Discount is possible with the support of the Northpower Electric Power Trust which owns Northpower on behalf of Northpower’s consumer beneficiaries connected to the Northpower electricity network. The Northpower Trust, says it is satisfying to see Northpower’s consumer beneficiaries continuing to benefit from the consumer ownership model.
“The Northpower Trust is delighted to see this level of discount flowing through to our local consumers.
“Our community will benefit strongly from this discount. It’s a very positive development and backed by real strength in Northpower’s business operations,” says the Northpower Trust.
To qualify for the discount, an electricity connection (ICP) must be supplied from the Northpower electricity network with a registry status of ‘connected’ on 1 November 2019, and be a current customer of an electricity retailer on that date.
Since 1993, Northpower and the Northpower Trust have given back $217 million directly to electricity consumers in Kaipara and Whangarei.
“Northpower is planning to spend over $200m building, maintaining and upgrading the Northpower electricity network over the next ten years. There are currently more than 60,000 electricity connections on the Northpower network,” says Mr McLeod.
The Northpower Trust owns Northpower on behalf of consumers connected to Northpower's electricity network in Whangarei and Kaipara Districts. Further details on the Northpower Pricing Discount can be found at https://northpower.com/electricity/pricing
Pricing Discount FAQs
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What exactly is a Pricing Discount?
A Pricing Discount is a discount on Northpower’s electricity distribution charges. The saving from this price reduction is paid out to consumers once a year as a lump sum, which is credited to your electricity bill in November or December.
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What will the Pricing Discount mean for me?
It means that if you meet the eligibility criteria, you will see a credit on your electricity bill in late November or December this year. However, retailers sometimes pay this earlier than expected.
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How do I qualify for the Pricing Discount?
To qualify as an eligible ICP, an ICP must be supplied from the Northpower electricity network with a registry status of “Active” (Connected) on 1 November 2021, have a current customer of an electricity retailer on that date, and the net consumption advised by the electricity retailers to Northpower for the 12-month period to 30 September 2021 for the ICP must be 1 kWh or greater.
The amount which each consumer receives for each eligible ICP will be determined by the consumption notified to Northpower by the electricity retailers for the 12-month period to 30 September 2021 in two bands as follows:
- Eligible ICPs with consumption exceeding 2,000 kWh will receive a single discount of $248.40 including GST.
- Eligible ICPs with consumption between 1 kWh and 2,000 kWh will receive a single discount of $63.25 including GST.
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Will my retailer pass it on?
Yes – and it does not matter which electricity retailer you are with. All retailers are required to pass-through the Pricing Discount they receive from Northpower on to their customers.
Questions about the Trust distribution
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Why Trust ownership?
As a single owner, the Trust is accountable for the stewardship of the Trust’s assets - funded by previous generations of consumers - for the benefit of current and future generations of beneficiaries.
All connected consumers are beneficiaries and receive pricing discounts, returning wealth to the local area while retaining ownership of a critical local infrastructure asset.
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Why the change from distribution to pricing discount?
Northpower is transitioning from providing a dividend to the NEPT for distribution to consumers, to a model that blends dividends to NEPT and discounts to connected energy customers.
This change will result in lower net line charges to consumers, via reduced costs on their energy bills for most consumers. Please see our Pricing discount FAQs
