Guide
What is a lines company, and how is it different from your retailer?
Two different businesses appear on one power bill. One you choose and one you cannot, and knowing which is which decides who you call in an outage and what a switch can save you.
by ComparePower. We say where every figure came from, and we leave a gap where we could not confirm one.
A New Zealand power bill is produced by one company and paid to one company, but it recovers the costs of two. Sorting out which is which is the single most useful thing you can know about how electricity is sold here. It decides who to ring when the lights go out, and it sets a ceiling on what switching can save you.
The lines company
Also called the distributor, or the network. It owns the poles, the wires, the transformers on the street and the connection to your property. It maintains all of that, and it sends the crew when a tree comes down.
You do not choose it. There is one physical network in any given area, so distribution is a regional monopoly, and that is why lines companies are regulated on what they can charge rather than left to compete. Move to the next suburb and you may well be on a different one; stay where you are and you have exactly one option forever.
The retailer
Also called your power company. It buys electricity in the wholesale market, arranges for it to be delivered over the lines company's network, meters it, bills you, and handles your account.
You do choose this one, and you can change it whenever you like without anyone visiting the property.
What each part of the bill belongs to
Your retailer bills you for everything and passes the delivery charge on to the lines company. So the lines company's charge is on your bill even though you never deal with them, which is why a lot of people have never heard of theirs.
Roughly a third to a half of a typical New Zealand power bill is delivery, and it varies far more between areas than the retail half does. That is the whole reason two houses with the same retailer on the same plan in different towns pay different amounts per unit.
Who to call
| Situation | Call |
|---|---|
| The power is out | Your lines company |
| A line is down or sparking | Your lines company, immediately, and stay well clear |
| A planned outage notice you did not expect | Your lines company |
| A bill you do not understand | Your retailer |
| You want a better rate | Your retailer, or switch |
| Setting up power at a new address | A retailer |
| A meter that looks broken | Your retailer, who will pass it to the metering provider |
The emergency case is the one worth committing to memory, because it is the one where people ring the wrong number in the dark. We publish the faults line and, where one exists, the live outage map for each of the 28 lines companies we list.
What this means for switching
It means switching is worth doing and it is not a magic wand. The part of the bill your retailer sets is genuinely competitive and moving it is worth real money. The part the lines company sets is fixed by your address, and no retailer can discount it, however the marketing is phrased.
So: compare on the part that can move. We compare 8 power companies and can show you what each of them offers at your address.
What is a lines company? — common questions
What does a lines company do?
It owns and maintains the poles, wires, transformers and street-level network that carry electricity from the national grid to your property, and it sends a crew when that network fails. It also charges for delivery, which your retailer collects on its behalf as part of your bill.
How do I find out who my lines company is?
It is named on your power bill, usually as the distributor or network. It is also determined entirely by your address. We publish a page for each of the 28 lines companies we list, and a page for each of the 142 towns and suburbs we cover that names the one serving it.
Can I choose my lines company?
No. Distribution networks are regional monopolies, because there is one set of wires down your street and one company that owns it. That is why they are price-regulated rather than competitive, and why switching power company never changes your lines charge.
Who do I call in a power cut, my retailer or the lines company?
The lines company. They own the network and they are the ones who dispatch crews and publish restoration information. Your retailer sells you electricity and cannot see or fix a fault on the network. Most lines companies run a 24-hour faults line and many publish a live outage map.
Why do lines charges differ so much between areas?
Because networks differ. A dense urban network spreads its costs over far more connections per kilometre of wire than a rural one covering long distances for few customers. Across the 42 towns MBIE surveys, the difference in lines charges is most of the difference in total price, with Wellington City at 37.01c per kWh against Balclutha at 52.52c.
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