Recent trends in revenue and demand
Nelson Electricity’s revenue from distribution line charges has increased over recent years. Revenue from line charges, which made up most Nelson Electricity’s revenue, increased by around 10% from 2008 to 2011, over and above inflation. Distribution line charge revenue from residential and commercial customers increased by 10%, and from larger-sized customers decreased by 2%. Most of Nelson Electricity’s revenue is from residential and commercial customers.
The increase in revenue is mostly due to prices rising. Demand growth played a limited role in increasing revenue.
The average price change varied across customer groups:
- The average price per smaller customer connection increased around 8%. The average price per unit of electricity delivered to smaller customers increased around 12%.
- The average price per larger customer connection decreased around 2%. The average price per unit of electricity delivered to larger customers increased around 7%.
Demand growth on Nelson Electricity’s network was mixed. The number of smaller customer connections increased 2%, while the number of larger customer connections was the same in 2011 as in 2008. Smaller and larger customers decreased electricity consumption by 2% and 9% respectively. The largest five customers increased electricity consumption 2%.
Recent trends in expenditure
Nelson Electricity’s total operating expenditure declined by 1% per year, adjusted for inflation.
Investment in the network increased steadily relative to the size of Nelson Electricity’s network.
Forecast network operating expenditure had a positive trend in each forecast round. Forecast network capital expenditure peaks and tails off over time. Each forecast round predicts different peaks in capital expenditure. This may reflect changes in actual business need, the uncertainty of scheduling projects in future periods, and the opportunity to update forecasts in the Asset Management Plan annually.
Recent trends in service reliability
The average duration of interruptions was above its regulatory limit in 2009, 2010 and 2011. The average frequency of interruptions was above its regulatory limit in 2009. Nelson Electricity’s average duration and frequency of interruptions were below the industry average.
Full analysis
The full analysis of Nelson 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.
