Distribution
[ Last Updated 24 January 2006 ]
There are 28 lines companies that own the local distribution networks throughout New Zealand. The ownership of distribution companies is a mix of public listings, shareholder co-operatives, community trusts and local body ownership, with most lines companies being owned by trusts.
Lines companies also differ in size, with one company (Vector) making up one third of the sector (by number of connections), and the largest four (Vector, Powerco, Orion and Unison) supplying 66% of all connections.
The lines companies are connected to the national grid and for the most part sell their services to retailers who provide a bundled "delivered electricity" service to end consumers, although some distribution companies contract directly with connected consumers. Most consumers are connected to the local networks, but a small number (such as the Comalco aluminium smelter) are directly connected to the national grid.
The Electricity Industry Reform Act (EIRA) 1998 required full ownership separation between lines and supply businesses. Since the introduction of the Act, however, amendments have allowed lines businesses to own some generation and to sell the output from those stations. The Commerce Commission [link to external website] enforces compliance with the EIRA and may grant exemptions to the cross-ownership restrictions.
The Commerce Commission is also responsible for regulating lines companies (including Transpower) under Part 4A of the Commerce Act. More information is available on the Electricity [link to external website] section of their website.
For information on lines companies charges, see Price Monitoring.
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