Plans, Rates and Pricing

Why has electricity infrastructure required so much investment in recent years?

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‎22-03-2018 08:43 AM

The Network Costs associated with transporting electricity and gas from their generation or production source to homes and businesses make up the largest part of customers’ energy bills (see explanations of Network Costs, "Why electricity costs what it does" and "Why gas costs what it does" above).


Increased Network Costs have been a major factor increasing the costs to retail business in supplying gas and electricity to their customers.


In particular, the electricity Distribution infrastructure, including the poles and wires, sub-stations and meters has required investment for both maintenance and upgrading. The investment is necessary for a variety of reasons, including updating ageing infrastructure to maintain reliability and to keep pace with growing Peak time electricity demand.


Many of today’s appliances and lifestyle choices involve the use of large amounts of electricity. Widespread use of large flat-screen TVs, gaming consoles, personal computers, mobile devices, air conditioners, dish washers, clothes dryers, brilliant down lights and heated pools in modern homes in expanding cities has required this increased investment.

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