Although the Commerce Commission is responsible for setting Transpower's total regulated revenue requirements, the Electricity Authority is responsible for approving the method by which Transpower shares the income among its transmission customers.
Authority chief executive Carl Hansen said his organisation remained open-minded on what a future transmission pricing method might be for the long-term benefit of all consumers.
He said the authority was very aware of the economic situation of the Far North and power prices in Northland when putting together the options.
"We are seeking submissions that have well-reasoned arguments, potentially new facts and evidence and that show it how best to promote efficient use of and investment in the national grid and other electricity assets," Mr Hansen said.
Northpower spokesman Steve MacMillan said his company did not support any of the proposals and that the status quo should remain.
Far North power users are already paying some of the highest electricity charges in the country.
Top Energy chief executive Russell Shaw said the company was extremely concerned at the authority's proposals and felt the Far North could be given an extremely raw deal.
In a hard-hitting statement, he said the increases under consideration called for Top Energy customers to subsidise the investment that had gone into keeping the lights on in Auckland by increasing the super city's transmission infrastructure.
"We fear that if these increases are introduced, many in our communities will be tipped into fuel poverty.
"And it's a huge step back for the efforts to encourage commercial investment in our region. Our communities need economic stimuli, not greater operating costs," he said.
Mr Shaw said Top Energy would support an option that supported an increase in transmission charges on future infrastructure investments only.
"With planned growth of local generation at Ngawha, it would in fact be cheaper for Top Energy to bypass the current Transpower transmission system and feed our power directly down to Northpower's customers."
He said Top Energy would submit against the proposals in the strongest terms and urged its customers to follow suit.
Consultation ends on August 11.
The Kaikohe-based Mid North Budgeting Service Trust has pleaded with the authority not to heap more misery on the poor by increasing lines charges.
"People are struggling to put food on the table and if they are struggling now, imagine what's going to happen if power costs go up further. Accommodation and power are the biggest cost for people up here," co-ordinator Kane Lyden said.
Far North Budgeting Management's Kaitaia office said any increase in electricity charges would put further strain on vulnerable and at-risk families.
