Before electricity reaches you it goes through a number of stages.
There are six major generation companies responsible for creating New Zealand’s electricity from a range of sources. The primary method is hydro which accounts for approximately half of New Zealand’s electricity generation. The six major generation companies are:
- Meridian Energy
- Contact Energy
- Genesis Power
- Mighty River Power
- Todd Energy
To transport electricity throughout the country from the Generator to the Distributor, a High Voltage Transmission network is required. This network is owned and operated by Transpower, a State Owned Enterprise (SOE). Around 200 Grid Exit Points (GXPs) allows the national grid to connect to Distribution companies like Wellington Electricity. The Transmission Grid is the backbone of the electricity supply industry, taking power flows across both islands.
This is where we* fit in. Wellington Electricity is one of 29 Distribution companies. We connect to the transmission grid at nine GXP locations within our region. Each GXP substation transforms energy to a lower voltage for distribution through overhead wires or underground cables to the Consumer.
Retail companies purchase electricity from the electricity market and through the transmission and distribution networks meter the electricity usage of consumers' premises. The Retail companies package the transmission and lines charges from Wellington Electricity, along with the amount of electricity used, to create a single invoice for customers.
How we charge for our services
- We charge a cost for supplying electricity and maintaining the network of poles, wires and other equipment that distribute power to customers' premises and the amount we are allowed to charge is regulated by the Commerce Commission.
- Your chosen electricity retailer sells you electricity and sends you electricity bills, and pays Wellington Electricity directly for distributing electricity to your premises.
- The price - or the network tariff - that you get charged to distribute electricity to your premises makes up about 30% of the amount that appears on the electricity bill issued by your retailer.
- Network tariffs comprise two separate charges: a transmission tariff, which is paid to Transpower (approximately 7% of your bill) when electricity is delivered via its high-voltage network, and a distribution tariff which is paid to us, when it is delivered via Wellington Electricity's network (approximately 23% of your bill).