Consumer NZ Powerswitch manager Paul Fuge tells Ryan Bridge about tips and tricks to avoid the winter electricity bill shock. Video / Herald NOW
Notice a spike in your power bill this month? New data from Statistics New Zealand shows electricity prices have jumped 6.2% since last year, ahead of inflation.
One Auckland woman showed the Herald her most recent bill for her family received June 1 - and it was $73 moreexpensive than her bill from June 1 2024.
She said the increase had compelled her to start shopping around for other power providers for her four-person home.
“I am thinking about it, I did have a look at it a few months ago. The thing is, with gas, there are only so many places you can go. You have to do the whole switch.
“It’s a never-ending cycle as a renter because it’s just impossible to save for a house when bills continue to increase.”
Consumer NZ’s Powerswitch manager Paul Fuge says power prices have seen a 'significant jump'. Photo / Supplied
Consumer NZ’s Powerswitch manager Paul Fuge said it was a “significant jump”.
He broke down the increase, analysing lines charges separately from energy charges.
He also acknowledged price rises had been under the inflation rate over a longer timeframe, but said that steady increase “doesn’t tell the whole story”.
“It’s also important to note that these averages don’t capture the lived experience of consumers whose incomes haven’t kept pace with inflation, particularly those in energy hardship,” Fuge said.
“Many households were already struggling with high power prices, and the latest increases will only make this worse.”
A recent “substantial increase” was due to the beginning of a new regulatory period for energy companies, Fuge said.
“The main reason is how lines charges are regulated. Electricity networks are natural monopolies, and their pricing is set by the Commerce Commission in five-year regulatory cycles.
“From 1 April 2025, the new line regulatory period began, bringing substantial increases. The lines component alone is expected to add around $10–$25 per month to household bills, depending on location. A similar trend is occurring with gas," he said.
And Fuge acknowledged power prices had gone down by 7.2% in real terms between 2019 and 2014.
The Electricity Retailers’ Association of New Zealand (Eranz) confirmed prices had been flat or declined in real terms as per data from the Ministry of Business, Innovation and Employment.
Fuge said the 7.2% drop saw lines charges fall by 19.6% and energy charges by 2.2%: “So, while overall prices fell, this was due to declining lines charges. The energy component actually rose faster than inflation.”
Eranz, representing companies supplying about 90% of the country’s power, said its members recognised rising prices were challenging for many households.
“In the past year, retailers have begun passing on cost increases, with the largest contributor being regulated lines and transmission charges, set by the Commerce Commission, to fund infrastructure upgrades that will meet increasing electricity demand over the coming decades.
“Eranz members recognise that this is a challenging time for many households, and the sector is highly focused on delivering the best outcomes and affordable electricity to New Zealand consumers.
“Anyone struggling to pay their electricity bill is encouraged to contact their retailer as soon as possible. Our members have strong support measures in place and a variety of ways to help.”
Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022.
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