Time of use pricing
Vector’s pricing has a two-part time of use (TOU) price structure which is used to charge all electricity retailers for their residential ICPs where the electricity retailer obtains interval data (half-hourly consumption data) from each ICP’s smart meter. The TOU structure has a daily fixed price with different volumetric prices depending on the time period when the electricity is used. The peak time pricing is applied 7am to 11am and 5pm to 9pm weekdays in the winter period (01 April to 30 September inclusive). Off-peak pricing applies at all other times. For residential ICPs without smart meters or where their retailer doesn’t obtain smart meter interval data, an anytime volumetric price is charged to electricity retailers providing this is approved by Vector.
TOU pricing means that during peak times our volumetric prices will be higher than during off-peak times, which reflects that the cost of building our electricity distribution network for peak times. For residential standard ICPs, the off-peak variable price is zero cents per kWh, therefore the only distribution line charge between October and March is the fixed daily charge.
TOU pricing, if passed on by electricity retailers, offers residential consumers the ability to reduce their electricity bill by shifting some electricity use from peak to off-peak times. Please contact your retailer to see if they are offering a TOU plan that passes through to you the benefits of our TOU pricing. A smart meter capable of communicating interval data is required.
Controlled pricing
Vector maintains residential controlled price categories designed to reward residential consumers for the benefit these households deliver to us in helping to reduce load during peak periods.
ICPs need to have an electrical hot water cylinder connected to our load control system to be eligible for the controlled price categories.
We also have a TOU distributed energy resource (DER) tariff for residential and general ICPs with load that can be connected to or respond to our DERMS (distributed energy resource management system). We believe this will give us the flexibility for future load management.
If you want to know whether you’re eligible for the controlled or distributed energy resource price plans and would benefit from making a switch, get in touch with your electricity retailer.
Low user fixed charge
In September 2021, the Government agreed to phase-out the Low User Fixed Charge Regulations from 1 April 2022. These regulations set a maximum low fixed charge of 30 cents per day (excluding GST) that we and your retailer could offer to residential ICPs where consumption is less than 8,000kWh per year. The low user price categories have a combination of low daily charges and higher variable charges when compared with our standard price categories.
Phasing-out the regulations will see the maximum low user fixed charge increase gradually over five years until it is about the same as the standard fixed charge. Each year, the distributor maximum low user fixed charge will increase by 15 cents per day (excluding GST). The increase in the fixed line charge will result in a decrease to the volumetric (variable) line charges.
While the regulations are being phased out, it still pays to check with your electricity retailer that you’re on the right plan. If you are a low-use electricity consumer, using less than 8,000kWh per year, the low user fixed charge price categories could still be cheaper for you so it may pay to check with your electricity retailer to see if you are eligible for these price categories.
Your electricity retailer should inform you at least annually of how much energy you use, and whether it may be beneficial for you to switch to a low user fixed charge price category. If you want to know how much electricity you use, which price category you are on or whether you are eligible for a low user fixed charge price category, get in touch with your electricity retailer - it could save you money.
Low user fixed charge
In September 2021, the Government agreed to phase-out the Low User Fixed Charge Regulations from 1 April 2022. These regulations set a maximum low fixed charge of 30 cents per day (excluding GST) that we and your retailer could offer to residential ICPs where consumption is less than 8,000kWh per year. The low user price categories have a combination of low daily charges and higher variable charges when compared with our standard price categories.
Phasing-out the regulations will see the maximum low user fixed charge increase gradually over five years until it is about the same as the standard fixed charge. Each year, the distributor maximum low user fixed charge will increase by 15 cents per day (excluding GST). The increase in the fixed line charge will result in a decrease to the volumetric (variable) line charges.
While the regulations are being phased out, it still pays to check with your electricity retailer that you’re on the right plan. If you are a low-use electricity consumer, using less than 8,000kWh per year, the low user fixed charge price categories could still be cheaper for you so it may pay to check with your electricity retailer to see if you are eligible for these price categories.
Your electricity retailer should inform you at least annually of how much energy you use, and whether it may be beneficial for you to switch to a low user fixed charge price category. If you want to know how much electricity you use, which price category you are on or whether you are eligible for a low user fixed charge price category, get in touch with your electricity retailer - it could save you money.