Aurora Energy has been rated 4.5 out of 5 for its pricing practices by the Electricity Authority, which released scorecards for the 29 electricity distribution businesses across New Zealand earlier this month.
“The rating assesses the approach used by each company to establish annual electricity line charges and whether the methodology is clearly communicated and meets specified price setting principles. Given the scale of Aurora Energy’s current investment across the electricity network, this independent assessment is important,” said Aurora Energy Chief Executive Richard Fletcher.
“We are pleased that our rating has improved since the last assessment two years ago and Aurora Energy’s score was the second highest out of the 29 companies assessed.”
The Electricity Authority noted that Aurora Energy has good content in its pricing methodology documents, including a comprehensive pricing strategy and roadmap.
“We know electricity pricing can be complex and Aurora Energy’s lines charges are only one component of a consumers’ electricity bill. We’ve been working hard to simplify our pricing and ensure information about how our charges are set and regulated is accessible and easy to understand by all consumers.
“As our prices have had to increase recently, reflecting the investments we’re making, ensuring our prices are efficient is important to us. We are looking to introduce time of use pricing next year, which means consumers will pay lower prices if they use electricity at off-peak times when the electricity network isn’t as busy,” Mr Fletcher said.
The Electricity Authority commented that the cost of using electricity networks during off-peak hours appeared to be high across all networks, and recommended time of use prices are introduced.
“Our pricing methodology and roadmap is designed to support a changing energy future. We need to make sure pricing supports people who are changing how they use electricity to decrease their carbon emissions, such as moving from a petrol to an electric vehicle. Efficient pricing will help keep prices as affordable as possible as people transition to a low carbon economy,” Mr Fletcher said.
Aurora Energy consulted with the public in late 2021 on their pricing strategy and roadmap.
The scorecards and summary papers are available on the Electricity Authority’s website. https://www.ea.govt.nz/news/general-news/distribution-pricing-scorecards-202223-published/