From 1 October 2022, the Electricity Authority Levy (EA Levy) and Gas Industry Company Levy (GIC Levy) we charge our customers will change.
The Electricity Authority is a government entity responsible for the efficient operation of the New Zealand electricity market.
The Gas Industry Company is the entity responsible for developing gas industry arrangements that ensure gas is delivered safely, efficiently, and reliably to all customers.
Each year, the Electricity Authority and the Gas Industry Company reviews the levies they charge energy retailers. Nova then reviews the levy charges we charge to our customers, taking into account other pricing elements, such as provision of any prompt payment discount that may be applicable to some of our customers’ pricing.
We last changed the EA Levy and the GIC Levy charges on customer bills on 1 October 2021.
EA Levy changes*
From 1 October 2022, the EA Levy we charge to our electricity customers will increase by 0.4 cents/kWh to:
- 0.19 cents per kilowatt hour (kWh) for customers on pricing plans without a prompt payment discount (from 0.15 cents/kWh); and
- 0.22 cents per kilowatt hour (kWh) for customers on pricing plans that include a prompt payment discount (from 0.18 cents/kWh).
For an average residential electricity customer using 8,000 kWh of electricity per year, this change will add $3.60 per year, or 26 cents per month to their electricity bill. ^
For an average business electricity customer using 30,000 kWh of electricity per year, this change will add $12.00 per year, or $1 per month to their electricity bill. ^
^ The effect of the change will vary depending on a customer’s electricity use.
GIC Levy changes*
From 1 October 2022 the Gas Industry Company Levy we charge to our natural gas customers will increase by 0.3 cents per day to:
- 1.8 cents per day for customers on pricing plans without a prompt payment discount (from 1.5 cents/day); and
- 2.1 cents per day for customers on pricing plans that include a prompt payment discount (from 1.8 cents/day).
*The EA Levy and GIC Levy charges applicable to our “Time of Use” business electricity and industrial natural gas customers are managed separately. All levy prices listed exclude GST and are before any applicable prompt payment discount.
More information
For more information on how the Electricity Authority and Gas Industry Company are funded and the levy charges themselves, please visit the Electricity Authority and Gas Industry Company websites.
Common questions and answers
- When will I see these changes on my bill?
The changes take effect from 1 October 2022, so you will see your pricing change from your first bill after this date. - When did Nova last change the EA and GIC levies?
We last changed the EA Levy and the GIC Levy charges on our residential and business customer’s bills on 1 October 2021. - Why are you making these change now?
The Electricity Authority and the Gas Industry Company reviews the levies they charge electricity and natural gas retailers in July each year. We then review our customer levy charges. If we subsequently decide to make any changes, we need to consider customer price change notification times in line with our customer General Terms and Conditions. - I am on a fixed term plan with Nova. Do these changes apply to me, and can Nova make these changes under my contract terms?
Yes, these changes apply to all our residential and business electricity customers.
Nova’s fixed term plans allow certain pricing components to be adjusted in certain circumstances, including changes to the Electricity Authority and Gas Industry Company levies.