Here's why your power bill is getting more expensive

Sunday, 2 March 2025

Lloyd Burr explains the power price shock hitting industries hard.

Electricity prices will increase by $10 per month on average in New Zealand from April 2025.

The Commerce Commission agreed to increase revenue limits for national grid owner Transpower and local lines companies.

Some regions will see increases of around $10 per month, while others face $25 monthly hikes.

If you’ve received your monthly power bill that was a bit more expensive than normal, or just had an email from your provider that your prices will increase - here’s what is happening.

Why are power prices rising?

Last year the Commerce Commission announced it had agreed to increase revenue limits for national grid owner Transpower and local lines companies.

This meant costs for material and labour, higher interest rates, and rising levels of investment in the electricity network had all combined to cause an increase in the price you pay for electricity.

So, how much will they increase by?

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.

On average, the Commerce Commission estimated household electricity bills would increase by about $10 per month.

Prices would continue to rise until about 2030, where prices would still be increasing about $5 a month.

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.

But some companies had already rise prices as early as November last year, including Contact, Meridian and Mercury, which had increased prices by 5% to 15% in Auckland, Wellington and Christchurch. Prices for short-term discounted plans had increased by as much as 40%.

How much will it increase in each region?

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.