Another power bill hike looms for Canterbury families
Thursday, 18 June 2026
Canterbury households are facing a compounding wave of electricity cost increases - and one is looming that will buy them nothing they can see or feel.
Orion, the company that owns and operates the electricity network across Christchurch and Central Canterbury, wants to spend $1.51 billion upgrading its infrastructure over the next five years.
To fund this, Orion is seeking Commerce Commission approval to change how it charges consumers - meaning the cost falls on households, not the company itself.
If approved, the distribution part of a typical household bill would rise from $72 a month in the 2028 financial year to $94 by 2032.
Christchurch and Selwyn households are being hit by a series of electricity price increases, with Orion’s proposed network spending plan set to add another layer to already rising bills.
Households are already absorbing sharp increases in power, and Orion’s proposal would add another long-term charge to electricity bills, largely to maintain the reliability consumers have now rather than deliver a noticeably better service.
To fund the work, Orion has filed a formal application with the Commerce Commission to collect more revenue from customers than it could under the standard regulated price path.
If approved, the new price path would begin on April 1, 2027. Orion estimates it would add about $4 a month to the distribution charge of a typical household in its first year, compared with the standard regulated path, rising to about $9 a month in the final year.
The proposal follows a 13.7% increase in Orion’s typical residential delivery charges from April 1, 2026.
The extra cost of Orion’s customised plan would increase over time. In the final year, the distribution part of a typical household bill would average $94 a month, compared with $85 under the standard regulated path.
Orion says the investment is needed to replace ageing equipment, catch up on deferred work, support growth and strengthen the network against natural hazards, largely to maintain current reliability rather than improve it.
It says rapid growth in Selwyn and housing intensification in Christchurch are increasing demand for new substations, transformers and local lines, with Selwyn’s population projected to more than double by 2055.
The company - owned by Christchurch City Holdings Ltd, the investment arm of Christchurch City Council, and Selwyn District Council - doubled its profit from $12 million to $24m in the last financial year.
Separately, Transpower is pursuing a $193m upper South Island transmission upgrade that could add about $35 a year to a typical Christchurch household’s bill, although that increase is not expected to begin until about 2030.
Orion estimates the distribution part of a typical household bill would average $72 a month in the first year and $94 a month in the year ending March 2032.
Its estimates for the customised plan cover only the local distribution component of a power bill. Retailers also charge for electricity generation, transmission, metering and retail services, and may pass Orion’s increase through differently.
Independent verifier GHD assessed about 76% of Orion’s $1.55b draft programme and accepted 95% of the spending it examined.
It questioned parts of Orion’s proposed spending on local network upgrades, wildfire protection, pole maintenance, staffing and corporate support. It also said Orion should make greater efficiency savings across its operating costs.
Orion later cut its proposed programme from $1.73b to $1.51b, including reductions to low-voltage upgrades, growth projects and asset renewals.
The Commerce Commission will now test Orion’s forecasts, costs and alternatives before deciding how much extra revenue the company can collect from customers.
It is expected to decide whether to approve the plan in early 2027.