Eastland Network

Understanding the Electricity Industry

The Process


Power starts in our environment before being harnessed by Eastland Network to distribute it throughout our wider region, and make it available for even further afield. While we create it, the delivery of power to each of our customers is done through retailers like Contact and Genises.

Generation (The Power Stations)

Generation companies produce electricity and feed it into the national grid.  There are six main generator companies in New Zealand:

  • Contact Energy Limited
  • Genesis Power Limited - State Owned Enterprise (SOE)
  • Meridian Energy Limited - SOE
  • Mighty River Power Limited - SOE
  • TrustPower Limited
  • Todd Energy

Transmission (The High Voltage Power Lines)

Transpower New Zealand Limited (SOE) transports the power from generators to distributors across New Zealand through the national grid to various grid exit points (GXP’s) around the country.  These GXP’s are the points of supply from the national grid to local distribution network owners, like Eastland Network Limited.

Distribution (The Low Voltage Power Lines)

Distribution or lines companies such as Eastland Network own and manage the lines in local areas, which transport electricity between substations at the grid exit points, through to industrial, commercial and residential end users in their areas.  Lines companies deliver electricity to you on behalf of your energy retailer.
 
They are responsible for maintaining and managing the local network of lines to make sure supply is as reliable as possible.  They have to ensure the voltage and frequency of the power they carry meets various supply quality standards.
 
Line companies generally sell their services directly to retailers rather than end use consumers.  However, there are some very large end-user customers who are supplied directly.

Retailer (The Supplier to the End User)

Electricity retailers sell electricity to business and residential users.  There are six energy retailers in New Zealand:

  • Contact Energy Limited
  • FreshStart
  • Genesis Power Limited - SOE
  • Meridian Energy Limited - SOE
  • Mercury Energy - SOE
  • TrustPower Limited

When you pay your electricity bill, you also pay the fee charged to the retailer by the lines company; and the fee charged to the retailer by Transpower (the operator of the national grid).

Consumers (The End User)

Consumers are the end users of electricity.  They range from residential households to large commercial consumers like steel mills.  Consumers can choose which retailer in their area they want to buy electricity from.

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