Pricing explained
Types of sites
- Large sites: use lots of gas known as Time of Use (ToU) sites
- Smaller sites: use less gas known as Non-Time of Use (N-ToU) sites
Gas supply costs
The cost of gas supply can be split into four broad categories.
- Transmission fees: the cost of piping gas from a gas field to your local network provider
- Distribution fees: the cost of piping gas through your local network to your site
- Base gas price: how much the actual gas costs you
- Carbon fees: as part of the New Zealand Emission Trading Scheme (NZ ETS).
Pricing
- The carbon fees for all sites (relating to the NZ ETS) are fixed for the initial term of the contract with known rates each year.
- N-ToU pricing has everything bundled together into two rates, a daily rate and a consumption rate, both of which are fixed for the initial term, with no escalations.
- For ToU sites, the base gas rate is fixed for the first three years, but transmission and distribution charges can be changed annually.
- Transmission and distribution charges are set by network companies and are passed through by Genesis.
Non-Time of Use (N-ToU) pricing
Under the Supply Agreement, N-ToU is simplified into two rates per site.
- Daily rate: the amount you pay each day for your connection.
- Consumption rate: the amount you pay for each unit of gas you consume. In the supply agreement this rate is set as dollars per Gigajoule (GJ), however the rate we use in calculating N-ToU rates for your agency is converted to per kilowatt hour (kWh). This aligns with your invoices which will most likely have your consumption in kWh.
Time of Use (ToU) pricing
If you have any high consumption sites they may be classed as ToU.
ToU pricing is complex with a number of transmission and distribution costs determined by many variables. Because these rates vary from site to site, these are detailed in site-specific pricing supplements.
Pricing supplements
The pricing supplement contains the rates unique to your sites and is prepared by Genesis Energy.
If you have any questions email the Utilities team.
