6th June 2007

Electricity invoices

We have for many years now been pushing to get the retailer to segregate the invoice to show the

Our request to retailers have basically been rejected with the comment from one that this would
only happen if the government issues a regulation requiring the invoice to be itemized as requested.

However we did manage to have a question raised during question time in Parliament as follows .

Question

Will current electricity legislation be amended to ensure consumers can identify each separate charge
in accordance with October 2006 Government Policy Statement on Electricity Governance ; if so when ?

Answer

Portfolio: Energy
Minister : Hon David Parker
Date lodged : 05/04/07

Answer Text :

The matter of transparency of line and energy charges on domestic consumers’ bills is already
being progressed by the Electricity Commission.
In this first instance, as required by the Government Policy Statement, the Commission in the first instance,
as required by the Government Policy Statement, the Commission is seeking industry adoption of transparency
of invoices through retailer adoption of the model retail contract terms and conditions it has developed.

The model retail contract includes transparency of invoices as one of its conditions.

If the Commission eventually considers it necessary to recommend regulation it will advise me,
but regulations will only be considered if it is not possible to get industry adoption first..

Date Received: 19/04/07

On the 5th June we wrote to the acting chair of the Electricity Commission Peter Harris a letter
which included the above parliamentary question and answer followed by this statement.

“ We are of the opinion that because of the very large component in the price of the generator
who is also a retailer that it is unlikely that such an agreement will be reached.

We would however ask that we be advised as to how far negotiations have progressed to get the necessary agreement ?

To reinforce this opinion we attach a copy of a document from Network Tasman Trust,
which very adequately illustrates the very large component of the price that belongs to the gentailer
– that is the generator and the retailer being the same entity.

We therefore ask for a statement as to how many meetings that the Commission has had with the entities that are
both generators and retailers to solve this problem of the entity being both the generator and retailer.

As their pricing is the most predominant component of the invoice, we consider that they are unwilling to
provide the transparency that the GPS requires , and will only do so under regulation.

We believe that this problem will never be resolved as our information is that those involved are quite categorical
that regulation will be necessary for them to meet the requirements of the GPS.

We therefore ask when the Commission will advise that regulation is necessary. ?

We have had neither acknowledgement of, nor response to, this letter so we will proceed with an
Official Information Request as we believe
that as the price of electricity is one of the main concerns of our members we must pursue an answer.

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