About the Electricity Commission Levy on your bill

From 1 July 2005 you will notice a separate line on the back of your bill called "Electricity Commission levy". This change is being made for information purposes only, and will not impact the overall amount you pay for your electricity each month.

The Electricity Commission is the Government statutory organisation which regulates the operation of the electricity industry. The Commission charges all electricity retailers levies which cover the costs of overseeing the electricity market and fund reserve generation capacity or surplus power to avoid national power shortages and for the promotion of electricity efficiency. Electricity Commission Levies are included in your Mercury Energy prices but, until now, have not been separately identified.

There will be no increase to the overall amount you pay for your electricity. When the Electricity Commission charges are listed separately on your bill your variable energy charge will reduce accordingly.

The levies currently total around 0.20 cents per unit of electricity used. For the average residential customer the total levy will average $1.30 per month.

Frequently Asked Questions

What is the Electricity Commission?
The Government set up the Electricity Commission in September 2003 to oversee New Zealand's electricity markets. The Commission's role is to ensure that electricity is generated, transmitted and distributed to customers like you in an efficient, fair and reliable manner. It also promotes and facilitates the efficient use of electricity.

The Commission's goal is to ensure security of electricity supply for all homes and businesses. This involves the provision of reserve capacity for dry years when lake levels are low and ensuring that the electricity transmission grid operates effectively.

You can find out more about the Electricity Commission at: www.electricitycommission.govt.nz

What are the levies for?
In April 2005 the Commission introduced a new levy which will be used to provide reserve energy to ensure adequate security of electricity supply during dry periods. This includes the costs of Whirinaki, the new Government power station that provides 150MW of reserve energy capacity. The levy will also cover the cost of electricity efficiency work.

Prior to this, the Electricity Commission charged a levy that went towards operational costs of the Electricity Commission and overseeing the electricity market.

If you have any further queries regarding the Electricity Commission or the levy, please call our Customer Service Team on 0800 10 18 10 .