What is the WEL discount

CUSTOMER DISCOUNT SCHEME

From 31 March 2010

Questions & Answers

*All figures quoted include GST.

Q. Who is eligible for the discount?
A. The discount will apply to every metered and livened connection within the traditional WEL Networks
Area in the Waikato as defined by the WEL Networks map (click here to view map) regardless of who your electricity retailer is. You must be the electricity holder for that metered connection on 31 March 2010 at 5.00pm.
 
Q. How is the discount calculated?

For most customers there are two parts:

  • The discount scheme is worked out on 100% of the daily fixed line charge, which for residential and small business customers is 16.87* per day.
  • There is also a 22.96% discount on the variable line charge.
  • Adding these two together gives you your total 2010 discount.
  • The maximum discount paid to each metered connection is $1,856.00* incl GST

Q. When will I receive my discount?
A. The discount will appear as a credit on your power bill in April, May or June.
The date will depend on where your account is in the billing cycle.
 
Q. What will I receive if I have been a customer for less than 12 months?
A. You will be paid out on the volume and fixed charges that have been used at that address.
 
Q. What if I have recently moved into a newly built house?
A. You will only receive the amount owing at your new address for the time you have been connected to your new metered account.
 
Q. What should I do if I think I am eligible but the discount credit does not appear on my power account?
A. Contact WEL Networks on 0800 434 726 or email connect@wel.co.nz or visit the WEL Networks website www.wel.co.nz or write to WEL Networks Discount Enquiry, PO BOX 925, Hamilton.
 
Q. Can I have a cheque instead of a credit on my power account?
A. No, this is a discount off your line charges, not a cash payment.
 
Q. If I have switched retailers during the year, will I still receive a discount?
A. Yes. It does not matter who your retailer is because the discount is from WEL Networks, passed on to you through your electricity retailer.   WEL will automatically take into account usage with your new and old retailer.
 
Q. How do I check to see if I have received my discount?
A. The credit will be itemised on your April, May or June electricity bill and identified as a WEL Networks discount.  It is on the back page under Other Transactions and the words WEL Networks Discount will appear in bold print
 
Q. What should I do if I haven't received my discount by the end of June?
A. You should use the email enquiry sheet on the website connect@wel.co.nz or contact WEL Networks on 0800 434 726.
 
Q. Why is the eligibility date set at 5pm on 31 March 2010?
A. WEL Networks needed to have a point in time when eligibility is established. This time corresponds to the end of the WEL financial year.
 
Q. Why are line charges being discounted?
A. The WEL Energy Trust (the owner of WEL Networks Ltd) asked the Company to investigate options for reducing the cost of electricity for customers in its area. This Customer Discount Scheme is the result.
 
Q. What is the average discount?
A. The average is $244.00 discount on the line charges component of your annual electricity bill.
 
Q. Why don't you pay a flat rate discount?
A. The Company has investigated all options and believes this is a fairer discounting method than a flat rate. Under a flat rate scheme, some small users would receive more in discounts than they paid in line fees.
  
Q. How many customers does WEL Networks have?
A. Currently there are approximately 81,000.
   
Q. Are there business benefits for WEL Networks arising from this scheme?
A. Yes. While the scheme will lower the company's profits, it will make electricity more competitive against gas and enhance the company's reputation with its customers and the wider community.
 
Q. If I have moved premises during the year, will I receive the full 12 months discount?
A. Discounts are only being paid on current accounts.  You will not receive a discount for line charges that you may have paid at an older address; however, you will be paid for all usage for which you are the account holder as at 31 March 2010.
 
Q. What is WEL Networks' role in delivering electricity to my home or business?
A. WEL Networks develops and maintains the physical network (lines, poles, cables, transformers etc.) that delivers electricity to your home or business. It does not sell electricity to customers. Each electricity retailer in the WEL area charges customers for the electricity they use and for line charges to maintain the network. These line charges are charged by the retailer and passed on to WEL Networks.
 
Q. What are line charges?
A. They are charges for developing and maintaining the physical network (lines, poles, cables, transformers etc.) that delivers electricity to your home or business. There are two types of line charges - daily fixed line charges and variable line charges. Daily fixed line charges cost $61.59* per year for each residential customer. Variable line charges are proportional to the amount of electricity you use.
 
Q. How are the line charges collected?
A. They are collected by your electricity retailer as part of your electricity bill.
 
Q. Will I be able to work out the line charges component from my electricity bill?
A. No. Some of these charges may be bundled with the cost of your electricity.

*Note:  All figures include GST
 

Last updated: Tuesday, 6 April 2010