Powerco's 2018–2023 CPP

Powerco is New Zealand’s second largest electricity lines company, with its network connecting to more than 330,000 homes and businesses in the major centres of Tauranga, New Plymouth, Palmerston North and their surrounding regions.

The CPP allows Powerco to spend $1.27 billion on a major network upgrade to replace parts of its network built in the 1950s and 60s and nearing the end of its life. The network is also under increasing pressure from powering regions with strong growth such as Tauranga. The investment, which is a third more than Powerco has spent on its network in the past 5 years, is necessary to maintain a safe, secure and reliable network for its customers.

As a result of the upgrade, we expect a typical Powerco consumer’s monthly bill of $210 would increase by about $2.70 across the 5 year period. As only a portion of the increased expenditure will affect prices immediately, we also expect a further increase of about $6 a month from 2023 when pricing will reflect all completed investments. However, the total price a consumer pays also depends on other components including generation, transmission, and retail which make up the majority of a consumer’s electricity bill.

Powerco will have to report annually to both the Commission and its consumers about how its investment is tracking against its proposal.