Recent trends in revenue and demand
The Power Company’s revenue from distribution line charges has increased over recent years. Revenue from line charges, which made up most of The Power Company’s revenue, increased by around 15% from 2008 to 2011, over and above inflation. Distribution line charge revenue from residential and smaller commercial customers increased by 36%, from medium-sized customers was flat, and from large-sized customers declined by 1%. Most of The Power Company’s revenue was from residential and smaller commercial customers.
The increase in line charge revenue is due to a combination of increased prices and demand.
The average price change varied significantly across customer groups:
- The average price per small customer connection increased around 30%. The average price per unit of electricity delivered to small customers increased around 10%.
- The average price per medium-sized customer connection was flat. The average price per unit of electricity delivered to a medium-sized customer fell by around 3%.
- The average price per large customer connection declined about 15%. The average price per unit of electricity delivered to large customers increased around 30%.
Demand on The Power Company’s network increased. The number of large customer connections grew about 15% while growth for small and medium customers was modest. Total electricity consumption increased around 7%.
The Power Company is a consumer owned trust and only subject to information disclosure regulation. The Power Company may choose to re-distribute part of its revenue to its consumer-owners or to community projects.
Recent trends in expenditure
The Power Company’s total operating expenditure increased by 1.5% per year over and above inflation.
Investment in the network declined significantly in 2011. This may reflect the winding down of a large project.
Forecast network operating and capital expenditures tail off over time. This may reflect changes in actual business need, the uncertainty of scheduling projects in future periods, and the opportunity to update forecasts in its Asset Management Plan annually.
Recent trends in service reliability
The Power Company’s average duration and frequency of interruptions were above the industry average in most years. In 2009 the average duration of interruptions was below the industry average.
Full analysis
The full analysis of The Power Copmpany'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.
