Recent trends in revenue and demand
Counties Power’s revenue from distribution line charges has increased over recent years. Revenue from line charges, which made up most of Counties Power’s regulated revenue, increased by around 10% from 2008 to 2011, over and above inflation. Distribution line charge revenue from residential and smaller commercial customers increased by 13%, and from medium-sized customers by around 9%. Most of Counties Power’s revenue is from residential and smaller commercial customers.
The increase in revenue is made up of a combination of prices increasing and demand increasing.
The average price change varied across customer groups:
- The average price per small customer connection increased around 9%. The average price per unit of electricity delivered to a small-sized customer increased 7%.
- The average price per medium-sized connection increased 7%. The average price per unit of electricity delivered to a medium-sized customer increased 4%.
Demand on Counties Power’s network grew modestly. The number of small customer connections grew 4%, while the number of medium-sized connections grew 2%. The small- and medium-sized customer groups both increased electricity consumption around 6%.
Counties Power is a consumer owned trust and only subject to information disclosure regulation. Counties Power may choose to re-distribute part of its revenue to its community owners or to community projects.
Recent trends in expenditure
Total operating expenditure decreased 1% per year (adjusted for inflation). The majority of operating expenditure was not directly related to the network.
Investment in the network grew at a slower rate than the size of Counties Power’s business.
Network operating expenditure is forecast to grow significantly in coming years. Network capital expenditure is forecast to peak in the coming years. This may represent the undertaking of a large project.
Recent trends in service reliability
The average duration of network interruptions was below the industry average. The average frequency of interruptions was above the industry average in 2009, 2010 and 2011.
Full report
The full report of Counties Power'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.
