Changes to gas network prices

Gas distribution prices - effective from 1 October 2024  

This is a pricing disclosure, pursuant to the Commerce Commission’s (Commission) Gas Distribution Information Disclosure Determination 2012 (consolidated April 2018).

Vector’s gas prices are for the service we provide in delivering gas on our gas distribution network. The prices do not include any charge for the delivery of gas on the transmission network. 

Our annual price changes are limited to that required to achieve the notional allowable revenue prescribed by the Commission in its Gas Distribution Services Default Price-Quality Path Determination 2022. That is, the price changes are limited under regulation to inflation (Consumer Price Index) plus any under/over recovery from the previous year (headroom) and any changes in pass-through and recoverable costs such as council rates and statutory levies.

From 1 October 2024, we are increasing our gas prices by a weighted average change of 5.8%. The main reasons for the price change are:

• An increase in CPI (4.9%); and

• An increase in pass-through and recoverable costs (0.9%). 

The estimated weighted average price change for all standard price categories is 5.8%. There are no structural price changes and we have maintained historic consumer groups and price categories. 

From 1 October 2024 we have increased the proportion of revenue that is recovered from the fixed price component. This is largely achieved by increasing the fixed daily price component and lowering the variable price component. The price change moves residential prices from 83.08 cents per day to 87.67 cents per day, and 0.5824 cents per kWh to 0.6285 cents per kWh.

The price table below is a summary of Vector's gas network prices, all prices are exclusive of GST.

For a full description of prices and how they are applied, see our current price schedule at https://www.vector.co.nz/personal/gas/pricing or https://www.vector.co.nz/business/gas/pricing.

For further information on our pricing methodology used to set prices, see https://www.vector.co.nz/about-us/regulatory/disclosures-gas/pricing-methodology

Prices for standard gas consumers from 1 October 2024 (previous price, if changing)

If you use natural gas, you will likely have a contract with a gas retailer for the supply of natural gas to your home or business. Generally, Vector charges gas retailers. Gas retailers then typically bundle the cost of our services along with other costs. These other costs being the purchase price of the gas, transmission services and metering etc. Gas retailers then usually provide you with one monthly bill. Retailers will choose how and when Vector's price changes above are passed through to their customers.