Recent trends in revenue and demand
Scanpower’s revenue from distribution line charges was flat over recent years. Revenue from line charges, which made up most of Scanpower’s revenue, increased by around 1% from 2008 to 2011, over and above inflation. Distribution line charge revenue from residential and smaller commercial customers increased by 10%, and from large-sized customers by 2%. Most of Scanpower’s revenue was from residential and smaller commercial customers.
Scanpower’s flat revenue growth reflects a decline in demand that has been offset by higher prices.
The average price change varied across customer groups:
- The average price per small and medium customer connection increased by 10% and 30% respectively. The average price per unit of electricity delivered to small- and medium-sized customers increased around 8% and 6% respectively.
- The average price per connection for the largest five customers decreased by 35%. The average price per unit of electricity delivered to the largest five customers grew modestly.
Overall demand on Scanpower’s network has fallen. Electricity consumption by its largest five customers reduced by 38%. The number of small customer connections was flat and growth in consumption of small customers increased by around 3%.
Scanpower is a consumer owned trust and only subject to information disclosure regulation. Scanpower may choose to re-distribute part of its revenue to its consumer-owners or to community projects.
Recent trends in expenditure
Scanpower’s total operating expenditure has declined by 1% per year after controlling for inflation.
By far the largest category of operating expenditure in 2011 was general management, administration, and overheads.
Most of Scanpower’s capital expenditure in 2011 went towards asset replacement and renewal.
Investment in the network has been increasing faster than the growth in the size of Scanpower’s business.
Scanpower’s network capital expenditure forecasts tail off over time. This may reflect the end of a large project.
Recent trends in service reliability
The average duration and frequency of interruptions on Scanpower’s network were both below the industry average.
Full analysis
The full analysis of Scanpower'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.
