New Zealand Electricity Supply Chain


Energy Cost Breakdown

The NZ electricty supply chain costs are mapped out in this chart. Traditionally, over 16% gst inclusive or 18% gst exclusive amount of the cost of power has been in the form of retailer charges.

Lighthouse Difference

Lighthouse is an energy retailer with a difference.
With lighthouse you pay for the power you use, at whole sale spot pricing. This means you get power at the same price that the generators produce it. We also tell you when spot pricing is higher or when spot pricing is lower so you can budget your power usage to save as much as possible!
With us, you can expect:
1. Cheaper electricity over the long run
2. No fixed terms and contracts
3. Transparency – you see exactly how your fees are Brocken down into
4. Simple, No Hassle online switching
5. Choice of payment systems including Visa, Alipay, DD etc.

New Zealand electricity market

The traditional model in New Zealand has 5 effective tiers of industry players:
Generators – Their roles are to create the power using a combination of hydro, thermo, wind etc. and put this into the electricity grid. E.g. mighty river power.
Distributors – Their roles is to maintain the grid and to get the power from the generators to the grid them to you. E.g. Vector.
Metering service providers – Their roles are to make sure your meters are read in a timely fashion
Retailers – The roles of the retailer is to make sure the consumers have a pathway to access electricity in the grid.
Hedging providers - The role of the hedging provider is to provide insurance to Retailers against price fluctuations so retailers can budget their profitability better.
EAP – The EAP is the oversight body that makes sure all parties are working together and that no single party regardless of size is disadvantaged or advantaged. This means that all retailers access power at exactly the same rates, and all retailers are charged exactly the same fees by distributors and metering services providers.

Each party has their own costs and profit centres and ultimately the consumer – you, pay for this electricity.

Lighthouse Energy’s goal is to flatten this distribution chain.
We use state of the art systems to minimise cost and Our members pay for electricty at wholesale rates, by-passing hedging providers. This means they usually see considerable savings month to month and year to year. There are occasions where wholesale pricing might spike but that is normally very short term.



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