Recent trends in revenue and demand
Marlborough Lines’ revenue from distribution line charges has increased over recent years. Revenue from line charges, which made up most of Marlborough Lines’ revenue, increased by around 20% from 2008 to 2011, over and above inflation. Distribution line charge revenue from residential and commercial customers increased by 18% and from larger-sized customers by 20%. Most of Marlborough Lines’ revenue is from residential and commercial customers.
The increase in revenue was mostly due to prices rising, but some of it was due to an increase in demand.
The average price change varied across customer groups:
- The average price per smaller customer connection increased 15%. The average price per unit of electricity delivered to smaller customers increased 17%.
- The average price per larger customer connection increased 15%. The average price per unit of electricity delivered to larger customers increased 5%
Demand growth on Marlborough Lines’ network was mixed. The number of larger customer connections increased around 5%, while that of smaller customers increased 3%. Larger customers increased electricity consumption around 15%. Smaller customers increased electricity consumption 1%.
Marlborough Lines is a consumer owned trust and only subject to information disclosure regulation. Marlborough Lines may choose to re-distribute part of its revenue to its consumer-owners or to community projects.
Recent trends in expenditure
Marlborough Lines’ total operating expenditure increased by 5% per year over and above inflation. In 2011 the largest category of operating expenditure was general management, administration and overheads.
Capital expenditure increased in recent years. This may reflect the beginning of a large project. The largest category of capital expenditure in 2011 was asset replacement and renewal.
Forecast network operating expenditure differs in trend and value between forecast rounds. This may reflect changes in actual business need, uncertainty, or a short term focus.
Marlborough Lines’ forecasts network capital expenditure to fall, followed by an increase in investment around 2014.
Recent trends in service reliability
The average duration of network interruptions was above the industry average and increased over time. The average frequency of interruptions was generally flat and above the industry average every year except 2009.
Full report
The full report of Marlborough Lines' performance from 2008 to 2011 can be downloaded below.
