25 June 2014 V2
FIXED CHARGES (CAPACITY)
The charges from The Lines Company can be broken down into three main areas.



Fixed charges – shown as Network charges on your bill
Variable charges – shown as kW load and Transmission on your bill
Dedicated asset charges – shown as metering, control and transformer on your bill
This paper explains in some detail how the Fixed Charges are calculated for our customers.
Fixed charges
Variable charges
Dedicated Asset Fees and
Charges
Table 1 – Breakdown of lines charges
Network Charge
The Network charge which shows on your monthly bill is worked out by multiplying the units (kVA) by the
rate ($). The network charge represents the cost of providing for and maintaining your connection to the
network. All connections should have a network charge regardless of whether the power is flowing into the
property. Customers have an obligation to pay a Network Charge and in turn, TLC has an obligation to be
network ready to provide capacity should you require it. This means, with a bit of paperwork, you should be
able to walk back into the house, flick the switch and have power.
Quantity (kVA)
The network is designed to have sufficient capacity to meet the requirements of all its customers. The sum
of all the electrical appliances and gadgets in your house or installation adds up to the capacity requirement
of your connection.
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25 June 2014 V2
For instance if you have a heat pump with a kW (kilowatt) rating of 3 plus an electric oven and fridge your
capacity requirement is reaching around 6-8 kW. Accurate calculation of the capacity requirements of a
connection is difficult and dependant on sophisticated measuring devices. It also assumes that customers
will not turn everything on at once. As the capacity requirements are at best approximate, we call this
“Chargeable Capacity”.
Your individual contracted, assessed, or recorded chargeable capacity is banded and represented by a
Notional Unit of Capacity – see figure 2 on page five.
For instance, if your water pump has a capacity requirement between 1-3 kW the notional unit that will be
charged is 2 kVA. The minimum notional unit for any connection is 2 kVA. The minimum notional unit for
domestic customers is 5 kVA.
Fixed
The network charge is fixed and not expected to change from year to year. Generally only a change to the
structure of the installation, or a significant change in use will affect capacity requirements and therefore
require a change to contracted capacity. Because of banding, this in turn, may not force a change to the
notional unit.
How is Chargeable Capacity set or reviewed?
When setting the Chargeable Capacity the use and structure of the installation will be considered and a
capacity level set, see Figure 1 on page five. This level may not need to change over the years, but if either
The Lines Company or the customer feels this level needs to be reviewed, there is a process in place for this.
The review will consider any changes to the use and structure of the installation and depending on the meter
at your connection we will use either billed kW load or highest anytime peaks to re-calculate Chargeable
Capacity (kVA).
What difference does my meter make?
If you have a Time-of-Use meter capable of recording consumption in half hour time blocks it is possible,
after downloading this data, to establish the ½ hour peak levels during the previous 12 months. See Table 2.
If you have a standard (non Time-of-Use) meter capable only of showing consumption (energy use) then TLC
must assess capacity by using the billed kW load. See Table 3.
The process for reviewing Chargeable Capacity differs depending on the type of meter you have. Please see
Figure 3 on page six for an overview.
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Time-of-Use Meters and Network Charges
If you have a Time-of-Use meter, this is the process for reviewing the Network Charge.
Network Charge
(1) Establish Highest Anytime Peak over the previous 5 years
(2) Adjust for Power Factor^
(3) Assign a Notional Unit of Capacity.
Example: The highest half-hour load at an installation, over the
past five years is 16.32 kWh
Step 1: kWh → kW.
Even a TOU meter measures load in time blocks. Therefore in
order to reach kW we must remove the time factor.
kW
=
16.32 kWh/0.5h
=
32.64 kW
Step 2: kW → kVA. Adjust for Power Factor^ and round to the nearest
whole number with 5 rounding up.
kVA
=
32.64 kW/0.95pf
kVA
=
34.36 kVA
=
34 kVA
Step 3: Assign a Notional Unit of Capacity (NUC)
34 kVA is within the 31-37 NUC band (See Figure 2).
The Network Charge is set at 37 kVA.
^Power Factor is an industry term used to indicate electrical efficiency, the higher the power
factor the more efficient the network and/or connection. Major customers will have connection
hardware capable of measuring individual power factor losses. The majority of customers do not
Standard Metershave
andsuch
Network
Charges
– Table
2:
sophisticated
connection
hardware
and for these connections we use the average
industry power factor, currently 0.95 pf.
Table 2: Chargeable Capacity – Time-of-Use meter
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Standard Meters and Network Charges
If you have a Standard (non Time-of-Use) meter, this is the process for reviewing the Network Charge.
Network Charge
1. Assess chargeable capacity
2. Assign a Notional Unit of Capacity
Example: If the installation’s highest profiled kW load level over
the past five years is 0.77 kWh, the following process is followed.
Step 1: kW → kVA.
To provide an assessment of chargeable capacity we multiply kW by two
and round to the nearest whole number with 5 rounding up.
kVA
=
0.77 kW x 2
kVA
=
1.54 kVA
=
2 kVA
Step 2: Assign a Notional Unit of Capacity (NUC)
2 kVA is within the 1-3 NUC band (See Figure 2).
The Network Charge is set at 2 kVA.
Table 3: Chargeable Capacity – Standard meter
Notes:
The Methodology used to establish and set the Fixed Charge tariff is presented in the 2014 Pricing
Methodology. A copy of this document and the Tariff schedule may be collected from TLC Head Office or
viewed on the company website: www.thelinescompany.co.nz/disclosures
Occasionally TLC will conduct a network review to ensure that a customer’s network charge reflects their
capacity requirements. If your installation is affected, and your notional unit is likely to increase you will
receive at least 4 weeks notice, as per TLC Terms and Conditions.
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ALLOCATION OF CAPACITY AT AN INSTALLATION
Figure 1. Process used to initially allocate capacity (e.g. new builds)
Load Application
Connection Agreement
Pricing
Network Charge
•Made by the customer and
assessed by the engineering
department
•Establish chargeable
capacity (fixed)
•Set initial kW load (variable)
•Notional unit of chargeable
capacity assigned (kVA)
•Rate dependent on
customer group and plan
•Customer Notified
•kVA x Rate = Network
charge
Notional Units of Capacity (NUC)
Based on contracted, calculated, assessed or re-assessed Chargeable Capacity. This Notional Unit of
Capacity is the quantity (or unit) part of the fixed Network Charge. All installations with a Standard meter
are assigned a NUC. Time-of-Use meter customers under 100 kVA are assigned a NUC. Time-of-Use meter
customers over 100 kVA are individually assessed.
Figure 2. Notional Units of Capacity
NUC Range
1-3
4-6
7-9
10-11
12-15
16-20
21-30
31-37
38-40
41-50
51-56
57-60
61-70
71-74
NUC
2
5
7
10
13
18
25
37
40
50
55
60
70
74
NUC Range
75-80
81-90
91-100
101-110
111-120
121-130
131-140
141-150
151-160
161-175
176-180
181-200
201-300
301-420
NUC
80
90
100
110
120
130
140
150
160
175
180
200
300
420
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REVIEW OF CAPACITY AT AN INSTALLATION
Figure 3. Process used to review capacity
Either:
Investigate:
•customer request
for capacity review
•TLC review
•type of meter
•changes in use of
installation
•changes in structure
of installation
STANDARD
METER
Complete new
Connection
Agreement if the
capacity
requirements have
changed in the long
term.
Customer advised of
new pricing plan as a
result of either
increased or
decreased
chargeable capacity.*
TIME-OFUSE METER
*capacity charges shall
apply from the date
advised.
Establish highest kW
load – over period not
exceeding 5 years
Establish highest
anytime peak over the
previous 5 years
Multiply highest kW
load by 2. Assign
the total a notional
unit of capacity. E.g.
8 kW (4 kW x 2)
would equate to a
NUC of 7 kVA.
For Standard and Low
User customers assign
the highest anytime
peak a notional unit
of capacity. 22 kW =
NUC 25 kVA.
For Major
customers with
Time of Use meters
and over 100 kVA
the Notional Units
of Capacity are not
used.
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