Under the Commerce Commission’s Information Disclosure requirements, financial, technical and pricing information is published annually.
This is to make sure enough information is readily available for anyone interested in assessing whether the Commerce Act is promoting the long-term benefit of consumers in a market where there is little or no competition.
Future Pricing Roadmaps
The electricity industry in general is entering an exciting period of growth driven by the reducing costs of solar photovoltaic, battery storage and electric vehicle which will transform how we price for our services going forward.
While the opportunities presented by these technologies are exciting, the way distribution prices are calculated needs to change. If they don’t, electricity bills for ordinary New Zealanders are likely to increase further over the long-term.
Over the next couple of years, Horizon Networks, in consultation with electricity traders and consumers, will be looking at the options available to set more fair and efficient pricing for households.
In April 2017 Horizon Networks first prepared and published a roadmap signalling a journey towards pricing reform to deliver service based and cost reflective pricing. This was a result of expectations set out by the Electricity Authority in October 2016 which stated one of the objectives of future pricing structures was to provide greater transparency that allows for improved consumer choice. Progress on Horizons future pricing reform is regularly updated.
Horizon Networks Future Pricing Roadmap Update May 2020Horizon Networks Future Pricing Roadmap Update May 2019Horizon Networks Future Pricing Roadmap Update Nov 2018Horizon Networks Future Pricing Roadmap Update May 2018Horizon Networks Future Pricing Roadmap Update Nov 2017Horizon Networks Future Pricing Roadmap Apr 2017Horizon Networks Oct 2015 Pricing Consultation SummaryHorizon Networks Pricing Consultation Oct 2015Pricing Methodology
Horizon Networks Distribution Limited ("Horizon Networks") owns and operates the electricity distribution business in the Eastern Bay of Plenty. This means Horizon Networks provide the physical infrastructure (poles and lines) that delivers electricity to your property.
Horizon Networks' charges relate only to the cost of providing the electricity distribution services.
The amount Horizon Networks may charge customers for the distribution of electricity is regulated by the Commerce Commission, using the Default Price Quality Path methodology. The prices calculated include several inputs, e.g. revenues, cost of capital, future investment and operating expenses, ensuring our business is sustainable while ensuring quality of service to our customers. The methodology used in these calculations is published annually along with the price schedules.
Horizon Networks won’t send you an electricity bill as we charge the electricity retailers, who include our charges, along with the generation and other costs, on the bill they send to you.
The prices charged by your retailer will be different to those prices Horizon Networks charges your retailer (which you can find on this website). Connected consumers are advised to contact their retailer to better understand the retailers pricing structures.
The line charges on your electricity account include the costs we pass on from Transpower, for transmitting electricity from generation points around New Zealand across the National Grid to ‘grid exit points’ (GXPs) in your area. The remainder of the charge covers the cost of distributing electricity from these GXPs, across our network assets to your home or business. The cost of the electricity you use is billed by your electricity retailer.
Horizon Networks Pricing Methodology 2023 - 2024Horizon Networks Pricing Methodology 2022 - 2023Horizon Networks Pricing Methodology 2021 - 2022Horizon Networks Pricing Methodology 2020 - 2021Horizon Networks Pricing Methodology 2019 - 2020Horizon Networks Pricing Methodology 2018 - 2019Horizon Networks Pricing Methodology 2017 - 2018Horizon Networks Pricing Methodology 2016 - 2017Horizon Networks Pricing Methodology 2015 - 2016Horizon Networks Pricing Methodology 2014 - 2015Horizon Networks Pricing Methodology 2013 - 2014Horizon Networks Pricing Methodology 2012 - 2013Price Schedules
Please review the following Horizon Networks Pricing Schedules.
Horizon Networks Price Schedule 2023 - 2024Horizon Networks Price Schedule 2022 - 2023Horizon Networks Price Schedule 2021 - 2022Horizon Networks Price Schedule 2020 - 2021Horizon Networks Price Schedule 2019 - 2020Horizon Networks Price Schedule 2018 - 2019Horizon Networks Price Schedule 2017 - 2018Horizon Networks Price Schedule 2016 - 2017Horizon Networks Price Schedule 2015 - 2016Horizon Networks Price Schedule 2014 - 2015Horizon Networks Price Schedule 2013 - 2014Horizon Networks Price Schedule 2012 - 2013Loss Factor Methodology
The Electricity Authority (EA) requires that Electricity Distributors calculate and publish Reconciliation Loss Factor for each loss factor code in the registry each year. Losses are the energy lost in distribution from the point of connection to the end consumer, and are comprised of losses through transmission line resistance, transformer losses, network parasitic losses, metering errors, and unmetered energy. These methodology documents are provided as an overview of Horizon’s Loss Factor calculation process.
Horizon Networks Loss Factor Methodology 2023 - 2024Horizon Networks Loss factor methodology 2022 - 2023Horizon Networks Loss factor methodology 2021 - 2022Asset Management Plan (AMP)
Managing network assets wisely and sustainably is an important part of optimising Horizon Networks’ lifecycle management strategy. We have an extensive 10 year asset management plan in place.
The objective of our asset management plan is to clarify the current asset management practices used by Horizon Networks and how they will be managed over the next decade. It provides a medium-term outline of asset management requirements and specific work programs over the period from 1 April 2023 to 31 March 2033 (10 years).
Asset Management Plan 2023-2033Asset Management Plan 2022-2032Asset Management Plan 2021-2031Asset Management Plan 2020-2030Asset Management Plan 2019 - 2029Asset Management Plan 2018 - 2028Asset Management Plan Update 2017 - 2027Asset Management Plan 2016 - 2026Asset Management Plan 2015 - 2025Asset Management Plan 2014 - 2024
Disclosure Accounts
In order to promote the long-term benefit of consumers by promoting outcomes that are consistent with those produced in competitive markets, Part 4 of the Commerce Act 1986 provides for a regulatory regime of electricity lines services, which sets out the provisions for an information disclosure regime.
The purpose of the information disclosure regime is to ensure that sufficient information is readily available to interested persons to assess whether the purpose of Part 4 of the Commerce Act is met.
Horizon Networks' disclosure accounts since 2003 can be viewed below.
KPMG’s reports dated 01 August 2023 were prepared by KPMG, a New Zealand partnership (KPMG), solely in accordance with the terms set out in the engagement letters agreed between KPMG and Horizon Energy Distribution Limited and for no other purpose. Other than KPMG’s responsibility to Horizon Energy Distribution Limited, to the maximum extent permitted by law, none of KPMG, any entities directly or indirectly controlled by KPMG, or any of their respective members or employees (together, ‘KPMG et al’) undertakes responsibility arising in any way from reliance placed by a third party on these reports. Any reliance placed is that party’s sole responsibility. To the maximum extent permitted by law, KPMG et al expressly disclaim any and all liability for any loss or damage of whatever kind to any person acting on information contained in KPMG’s reports, other than Horizon Energy Distribution Limited.
Nothing in these reports constitute legal advice or legal due diligence and no one should act upon any such information without seeking independent legal advice.
KPMG’s reports were prepared based on the information available at the time. KPMG has no obligation to update the reports or revise the information contained therein due to events and transactions occurring subsequent to the date of the reports.
2023 Information Disclosure Accounts2022 Information Disclosure Accounts2021 Information Disclosure Accounts2020 Information Disclosure Accounts2019 Information Disclosure Accounts2018 Information Disclosure Accounts2017 Information Disclosure Accounts2016 Information Disclosure Accounts2015 Information Disclosure Accounts2014 Information Disclosure Accounts2013 Information Disclosure Accounts2012 Information Disclosure Accounts2011 Information Disclosure Accounts2010 Information Disclosure Accounts2009 Information Disclosure Accounts2008 Information Disclosure Accounts2007 Accounts, Performance Measures and Statistics2006 Accounts, Performance Measures and Statistics2005 Accounts, Performance Measures and Statistics2004 Accounts, Performance Measures and Statistics 2003 Accounts, Performance Measures and StatisticsPrescribed Terms and Conditions of Contracts
Pursuant to Clause 2.4.9 of the Electricity Distribution Information Disclosure Determination 2012 (consolidated in 2015).
Default Distribution Agreement (Rev 2 12 March 2021)Standard New Contract DisclosureDefault Price Quality Path
Electricity Distribution Services Default Price-Quality Path Determination 2020
The Electricity Distribution Services Default Price-Quality Path Determination 2020 takes effect on and from 1 April 2020 and applies for the period 1 April 2020 to 31 March 2025. It amends and replaces the Electricity Distribution Services Default Price-Quality Path Determination 2015.
The Horizon Networks Default Price-Quality Path Compliance Statements have been prepared to demonstrate compliance, or otherwise, with the price path and quality standards within the determination.
KPMG’s reports dated 01 August 2023 were prepared by KPMG, a New Zealand partnership (KPMG), solely in accordance with the terms set out in the engagement letters agreed between KPMG and Horizon Energy Distribution Limited and for no other purpose. Other than KPMG’s responsibility to Horizon Energy Distribution Limited, to the maximum extent permitted by law, none of KPMG, any entities directly or indirectly controlled by KPMG, or any of their respective members or employees (together, ‘KPMG et al’) undertakes responsibility arising in any way from reliance placed by a third party on these reports. Any reliance placed is that party’s sole responsibility. To the maximum extent permitted by law, KPMG et al expressly disclaim any and all liability for any loss or damage of whatever kind to any person acting on information contained in KPMG’s reports, other than Horizon Energy Distribution Limited.
Nothing in these reports constitute legal advice or legal due diligence and no one should act upon any such information without seeking independent legal advice.
KPMG’s reports were prepared based on the information available at the time. KPMG has no obligation to update the reports or revise the information contained therein due to events and transactions occurring subsequent to the date of the reports.
Annual Price-Setting Compliance Statement for the assessment date, 31 March 2024
Updated Annual Price-Setting Compliance Statement for the assessment date, 31 March 2023
Annual Price-Setting Compliance Statement for the assessment date, 31 March 2023
Annual Price-Setting Compliance Statement for the assessment date, 31 March 2022
Annual Price-Setting Compliance Statement for the assessment date, 31 March 2021
Assessment Period Compliance Statements
Annual Compliance Statement for the assessment date, 31 March 2023Annual Compliance Statement for the assessment date, 31 March 2022Annual Compliance Statement for the assessment date, 31 March 2021Annual Compliance Statement for the assessment date, 31 March 2020Annual Compliance Statement for the assessment date, 31 March 2019Annual Compliance Statement for the assessment date, 31 March 2018Annual Compliance Statement for the assessment date, 31 March 2017Annual Compliance Statement for the assessment date, 31 March 2016Annual Compliance Statement for the assessment date, 31 March 2015Annual Compliance Statement for the assessment date, 31 March 2014Annual Compliance Statement for the assessment date, 31 March 2013Annual Compliance Statement for the assessment date, 31 March 2012Annual Compliance Statement for the assessment date, 31 March 2011Capital Contributions
Pursuant to Part 4 of the Commerce Act 1986, the Commerce Commission has determined the disclosure of Capital Contributions under section 2.4.6 of the Electricity Distribution Information Disclosure Determination 2012.
The Horizon Networks Capital Contributions Policy has been amended in accordance with the Electricity Distribution Information Disclosure Determination 2012.
See also Asset Management.
Capital Contributions Policy
Participant Outage Plan
As the local electricity distributor in the Eastern Bay of Plenty, Horizon Networks is required to prepare and publish an updated “Security of Supply Participant Outage Plan”. This plan describes the rolling outage strategy and methodology in responding to the supply shortage declared by the Electricity Commission, also details the load shedding and restoration procedures to work with the System Operator of the National Grid, retailers and customers in a safe and economical manner.
Security of Supply Participant Outage Plan
As the local electricity distributor in the Eastern Bay of Plenty, Horizon Networksis required to prepare and publish an updated “Security of Supply Participant Outage Plan”. This plan describes the rolling outage strategy and methodology in responding to the supply shortage declared by the Electricity Commission, also details the load shedding and restoration procedures to work with the System Operator of the National Grid, retailers and customers in a safe and economical manner. For more information, Download the link below:
Security of Supply Participant Outage Plan
Threshold Compliance
As a monopoly service provider, we are subject to government regulation under the Commerce Act 1986.
Pursuant to the requirements of this Act, the Commerce Commission has set price and quality thresholds as a screening measure to identify distributors that warrant further investigation.
The price and quality thresholds, together with the information reporting requirements, are set out in the Commerce Act (Electricity Distribution Thresholds) Notice 2004, as amended by the Commerce Act (Electricity Distribution Thresholds) Amendment Notice 2006 (the notice).
Our threshold compliance statements have been prepared to demonstrate our compliance, or otherwise, with the thresholds in the notice.
Statement for the assessment date, 31 March 2010Statement for the assessment date, 31 March 2009Statement for the assessment date, 31 March 2008Statement for the assessment date, 31 March 2007Statement for the assessment date, 31 March 2006Statement for the assessment date, 31 March 2005
Valuation
The asset valuation as at 31 March 2004 has been completed in compliance with Regulation 19 (in accordance with the ODV Handbook) of the Commerce Commission's Electricity Information Disclosure Requirements 2004.
The valuation has been publicly disclosed and is available for inspection at the Horizon Networks offices in Whakatane.
The Optimised Deprival Value of the line business system assets as at 31 March 2004 as stated in the valuation report is $75,290,589.
The Regulatory Asset Valuations (RAB) for 2008 and 2009 are contained in the AV1 schedules in the Information Disclosure Accounts below.
Handbook for ODV - 30 Aug 2004PWC ODV Report 2004