Recent trends in revenue
WEL Networks’ revenue from distribution line charges has increased over recent years. Revenue from distribution line charges, which made up most of WEL Networks’ revenue, increased by around 10% from 2008 to 2011, over and above inflation. Distribution line charge revenue from residential and smaller commercial customers increased by 10%, from medium-sized customers by 13%, and from large-sized customers by 9%. Most of WEL Networks’ revenue is from residential and smaller commercial users.
The increase in revenue is mostly due to increasing prices, but some of it is because of an increase in demand.
The average price change varied across customer groups:
- The average price paid per small customer connection increased 7%. The average price per unit of electricity delivered to small customers increased 9%.
- The average price paid per large customer connection increased 8%. The average price per unit of electricity delivered to large customers increased 7%.
Overall demand growth on the network of WEL Networks was modest. Small customer connections grew 3% and the number of large customer connections was about the same in 2011 as in 2008. Small and large customers both increased their consumption of electricity around 2%.
WEL Networks is a consumer owned trust and only subject to information disclosure regulation. WEL Networks may choose to re-distribute part of its revenue to its consumer-owners or to community projects.
Recent trends in expenditure
WEL Networks’ total operating expenditure grew at 3% per year over and above inflation. The majority of operating expenditure was not directly related to the network.
Capital expenditure increased substantially from 2008 to 2011.The largest category of capital expenditure in 2011 was system growth.
Network operating expenditure forecasts tail off over time and may reflect changes in actual business need or a short term focus.
Forecasts of network capital expenditure show a general decline in expenditure for the coming years. Network capital expenditure forecasts differ significantly between forecast rounds and 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 and frequency of interruptions were both below the industry average.
Full analysis
The full analysis of WEL 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.
