Recent trends in revenue
Network Waitaki’s revenue from distribution line charges has increased over recent years. Revenue from line charges, which made up most of Network Waitaki’s revenue, increased by around 15% from 2008 to 2011, over and above inflation. Distribution line charge revenue from residential and smaller commercial customers decreased by 2%, from medium-sized customers increased by 26%, and for large-sized customers increased by 50%.
The increase in revenue is due to a combination of prices increasing and demand growth.
The average price change varied across customer groups:
- The average price paid per small customer connection decreased 5%. The average price paid per unit of electricity delivered to small customers was flat.
- The average price paid per medium-sized connection grew 30%. The average price paid per unit of electricity delivered to medium-sized customers increased 25%.
Overall demand growth on Network Waitaki’s network was mixed. The number of small customer connections grew 4%, while the number of medium-sized customer connections declined 2%. Electricity consumption by small and medium users was flat. The number of large customer connections grew 20%, while electricity consumption grew 6%.
Network Waitaki is a consumer owned trust and only subject to information disclosure regulation. Network Waitaki may choose to re-distribute part of its revenue to its consumer- owners or to community projects.
Recent trends in expenditure
Total operating expenditure grew 2% per year over and above inflation. Around half of operating expenditure was directly related to the network.
Capital expenditure fluctuated over time with a peak in expenditure in 2010. In 2011 a large majority of capital expenditure was in system growth.
Forecast network operating expenditure is flat in the coming years. Forecast network operating expenditure exceeded actual expenditure. This may reflect changes in actual business need, uncertainty or a short term focus.
Network capital expenditure forecasts peak in 2012/2013 and then tail off. The 2011 forecast of capital expenditure is significantly lower than previous forecasts. This may reflect changes in actual business need.
Recent trends in service reliability
The average duration and frequency of interruptions were below the industry average.
Full analysis
The full analysis of Network Waitaki'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.
