How much power prices are expected to rise in each region
Thursday, 21 November 2024
Electricity prices are set to rise from April 2025.
The Commerce Commission has agreed to increase revenue limits for national grid owner Transpower and local lines companies.
This meant households can expect to see an average $10 month increase in power bills from April.
Households can expect to see at least a $10 increase in power bills a month from April next year.
Increasing costs for material and labour, higher interest rates, and rising levels of investment in the electricity network had combined to cause this increase, according to the Commerce Commission.
The commission announced it had agreed to increase revenue limits for national grid owner Transpower and local lines companies.
On average, the Commission estimated household electricity bills would increase by about $10 per month ($120 annually) to pay for higher distribution and transmission costs, from 1 April 2025 for the first year of the period.
The average increase to would depend on where you live - with some regions seeing an increase of about $10, while some would be set back $25 a month, or $300 annually.
Those with Wellington Electricity (Wellington region), Orion Energy (Canterbury region), Electricity Invercargill (Southland region), Vector (Auckland region), Unison (Bay of Plenty/Hawke’s Bay), and Nelson Electricity, would see a $10 per month increase in the first year.
Those with Network Tasman, EA Networks, Powerco (Taranaki, Whanganui, Manawatū/Northern Bay of Plenty), Horizon Energy (Southern Bay of Plenty), Firstflight Network (Hawke’s Bay) would have an increase of $15 per month, or $180 annually, from April 2025 to 2026.
Meanwhile those with OtagoNet would have a $20 per month increase, while those with Alpine Energy, Top Energy and The Lines Company would have a $25 per month increase for the first year.
From April 2026 to 2030, Wellington Electricity, Electricity Invercargill, Vector, Nelson Electricity, Network Tasman, Powerco, Horizon Energy, Alpine Energy and The Lines Company would experience $5 increases per month.
Those with Orion Energy, Unison, EA Networks and OtagoNet would have a $10 per month increase.
Firstflight and Top Energy would have a $15 increases.
Commissioner Vhari McWha said promoting long-term consumer interests and helping ensure Kiwis received value for money was at the heart of the Commission’s decision.
“While the decisions mean there will be an increase in the prices most consumers see in their electricity bills, we also understand the importance of incentivising businesses to invest, improve, and meet consumer demands,” she said.
There were three key reasons for the upcoming estimated bill increases for the distribution and transmission component of your electricity bill, which was high inflation, interest rate increases and high levels of investment from Transpower and local lines companies to maintain the network and support growth.
“Deferring investment would mean even higher future prices and a network that does not meet consumers’ needs. Consumers rightly expect a safe and reliable network and greater investment is required to deliver the capacity and resilience Kiwis demand. To help reduce the initial price rise, we have delayed the recovery of some revenue.”
A draft decision the commission released in May, expected there would be a $15 monthly increase from April 2025, followed by a further $5 a month increase until 2030.