Recent trends in revenue and demand
Waipa Networks’ revenue from distribution line charges has increased over recent years. Revenue from line charges, which made up most of Waipa Networks’ revenue, increased by around 18% from 2008 to 2011, over and above inflation. Distribution line charge revenue from residential and smaller commercial customers increased by 39%, and from medium-sized customers by 8%. Most of Waipa Networks’ revenue is from residential and smaller commercial customers.
The increase in revenue is largely driven by prices increases, but some of it was also due to demand increasing.
The average price change varied across customer groups:
- The average price paid per small customer connection increased around 34%. The average price per unit of electricity delivered to small customers increased 21%.
- The average price paid per medium-sized connection increased around 3%. The average price paid per unit of electricity delivered to medium-sized customers increased around 4%.
Demand growth overall was mixed. There was modest growth of about 4% in the number of medium and small customer connections. Small customers increased consumption of electricity by 15% while medium-sized customers increased electricity consumption around 4%.
Waipa Networks is a consumer owned trust and only subject to information disclosure regulation. Waipa Networks may choose to re-distribute part of its revenue to its community owners or to community projects.
Recent trends in expenditure
Total operating expenditure grew by 8% per year over and above inflation.
Capital expenditure has returned to its 2008 level after declines in 2009 and 2010.
Network operating expenditure is forecast to drop. However, previous forecasts have significantly under-estimated actual expenditures.
Forecast network capital expenditure in 2011 is higher than previous years’ forecasts. 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. The 2011 forecast predicts a substantial increase in network capital expenditure over the coming years.
Recent trends in service reliability
The average duration and frequency of network interruptions were below the industry average throughout the period except in 2009.
Full analysis
The full analysis of Waipa Networks' performance from 2008 to 2011 can be downloaded below.
All dollar figures in our analysis are adjusted for inflation and expressed in 2011 dollars.
