Recent trends in revenue and demand
Buller’s revenue from line charges varied over recent years but increased from 2008 to 2011. Revenue from distribution line charges, which made up most of Buller’s revenue, increased by 3% from 2008 to 2011. Revenue collected from smaller customers grew 14% from 2008 to 2011. Most of Buller’s customers are residential and commercial customers.
The reasons for Buller’s revenue growth are not clear because of limited information about its largest five customers. Revenue from smaller and larger customers increased because prices increased and demand increased.
The average price varied across customers:
- The average price per smaller customer connection increased 14%. The average price per unit of electricity delivered to smaller customers increased 11%.
- The average price per larger customer connection increased 10%. The average price paid per unit of electricity delivered to a larger customer decreased 7%.
Overall demand growth on Buller’s network was modest. Smaller customer connections grew 3% while electricity consumption was flat. The number of large customer connections grew 8%, while electricity consumption grew 32%.
Recent trends in expenditure
Buller’s total operating expenditure grew 3% per year over and above inflation. The majority of operating expenditure went towards general management, administration and overheads.
Capital expenditure peaked in 2010 and may reflect the winding down of a large project. Most capital expenditure in 2011 went towards asset replacement and renewal.
Forecast network operating expenditure is flat but differs significantly in each forecast round. This may reflect changes in actual business need, uncertainty or a short term focus.
Forecast capital expenditure tails off over time. This may reflect the uncertainty of scheduling projects in future periods and the opportunity to update forecasts annually in the Asset Management Plan.
Recent trends in service reliability
The average duration of interruptions was higher than the industry average in every year. Except for 2010, the average frequency of interruptions was below the industry average.
Full analysis
The full analysis of Buller Electricity's performance from 2008 to 2011 can be downloaded below.
All dollar figures in our analysis are adjusted for inflation and expressed in 2011 dollars.
