Power companies hike prices despite profit jump
Saturday, 28 February 2026
Electricity companies are raising the price of power for hundreds of thousands of customers by more than double the rate of inflation, despite a bumper profit season.
Lisa Hannifin, chief customer officer of Meridian Energy, the country’s largest power firm, said its customers would see their bills go up by an average of 7.9%, or $4.60 a week.
Genesis Energy is also changing prices for its electricity and gas customers from early April.
About 80% of its customers would experience a price increase averaging 8.2%, while 20% of customers will see a decrease averaging 3.5%, it said.
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The impacts can vary significantly between households. The Post is aware of some bills going up by well into the double digits.
The changes come on top of steep price rises last year, that saw the average price consumers pay for power across all providers rise by 12.2%.
Hannifin said about 57% of Meridian’s latest increase stemmed from higher network charges, which the big gentailers do not control.
“We know a price increase is hard to hear, and for some people it will be really tough,” she said.
Meridian reported on Wednesday that it had nearly doubled its operating profit to $506 million in the six months to the end of December, thanks largely to “record wind generation and the second-best lake inflows on record”.
But the company said in online “questions and answers” that its prices were rising “because the cost of providing power is increasing”.
Hannifin said Meridian was “working hard to invest in new generation and better products to help keep energy as affordable as we can over time”.
The company invested $53m in new generation and other growth projects in the six months to the end of December, down from $72m in the corresponding period in 2024. But it has signalled higher spending ahead.
“We set our prices using long‑term averages to avoid sudden ups and downs, even when wholesale prices dip for a while,” Hannifin said.
Genesis Energy said its price increases were due to network charges, metering charges, government levies and “inflation in the cost of electricity generation and gas and LPG supply”.
It will also introduce new “administration fees” for customers who receive paper bills and pay by credit card.
“We understand that price increases are not easy in the current economic climate and encourage any customers who need support to get in touch with our customer care team,” chief revenue officer Stephen England-Hall said.
Genesis reported a 40% increase in its operating profit to $303m for the six months to the end of December, earlier this month.
It invested $70m in new generation and other growth initiatives during the half, down from $107m in the corresponding period in 2024, but is also signalling greater investment ahead.
England-Hall said Genesis could discuss flexible payment options with customers, “provide advice on managing energy use, and help customers review whether they’re on the best plan for their household.”