Recent trends in revenue and demand
Eastland Network’s revenue from distribution line charges has increased over recent years. Revenue from line charges, which made up most of Eastland Network’s revenue, increased by around 12% from 2008 to 2011 over and above inflation. Distribution line charge revenue from residential and smaller commercial customers increased by 11%, and from medium-sized customers by 22%. Most of Eastland Energy’s revenue is from residential and smaller commercial customers.
The increase in revenue is mostly due to prices increasing, but some of it was due to demand increasing.
The average price increase varied across customer groups:
- The average price per small customer connection increased around 10%. The average price per unit of electricity delivered to small customers also increased around 10%.
- The average price per large and medium connection increased around 3% and 10% respectively. The average price per unit of electricity for large- and medium-sized customers increased by 15% and 20% respectively.
Demand on Eastland Network’s network grew from 2008 to 2011. Growth in small customer connections and electricity consumption was flat. The number of medium- and large-sized customer connections increased by around 10%, with electricity consumption for both customer groups flat from 2008 to 2011.
Eastland Networks is a consumer owned trust that is subject to information disclosure and price-quality regulation. Eastland Networks may choose to re-distribute part of its revenue to its consumer-owners or to community projects
Recent trends in expenditure
Eastland Network’s total operating expenditure grew 2% per year over and above inflation.
Investment in the network has increased.
Forecast network operating and capital expenditure were both flat for the 2012 to 2016 period. This may reflect changes in actual business need, uncertainty or a short term focus.
Recent trends in service reliability
The average duration and frequency of interruptions were above the industry average from 2008 to 2011. In 2011 the average duration of interruptions was greater than the regulatory limit.
Full analysis
The full analysis of Eastland Network'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.
