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Home / Gisborne Herald

Firstlight Network explains how power price hikes affect Gisborne and Wairoa, better infrastructure promised

James Pocock
By James Pocock
Chief Reporter, Gisborne Herald·Gisborne Herald·
12 Jun, 2025 04:00 AM5 mins to read

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Firstlight Network manager George Drysdale said power price increases would support work to strengthen the network and ensure it can meet the growing energy needs of Tairāwhiti and Wairoa.

Firstlight Network manager George Drysdale said power price increases would support work to strengthen the network and ensure it can meet the growing energy needs of Tairāwhiti and Wairoa.

About 26,000 residential, commercial and industrial power consumers across Gisborne and Wairoa have seen monthly power bills increase from $13 to $19 on average since a nationwide policy change.

The region’s electricity lines company, Firstlight Network, says the price change will support its work to strengthen the network’s resilience following severe weather events such as Cyclone Gabrielle over the last few years.

Pricing increased across the country after the Commerce Commission decided to allow increased investment in the electricity network, which applied from April 1 this year.

The Commerce Commission limits the amount of revenue Transpower and most local lines companies can earn for a set period, typically every five years.

Firstlight Network owns and maintains the poles, wires and underground cabling used by electricity retailers to supply customers with electricity in Wairoa and Gisborne.

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The company explains on its website that its line charges (transmission and distribution charges combined) on average make up about 38% of the total cost on an electricity bill.

“Firstlight Network’s line charges go directly to energy retailers, who incorporate them into each customer’s power bill. The remaining costs are determined by the retailers,” the website states.

“For low domestic users (under 8000 kWh [kilowatt-hour] a year), the fixed-charge portion of Firstlight Network’s line charges is increasing 25%, from 60c to 75c per day, reflecting government regulations. The average overall increase for the Firstlight Network part of their power bill will be 20.2%, or $13 per month.”

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“Standard users (over 8000 kWh) will see, on average, an increase of 19.7%, or $19 per month.”

For commercial and industrial users, fixed charges will increase by 27% on average, while variable charges will increase by 14% on average.

The average increase to monthly power bills in other regions ranged from $10 to $25, according to Commerce Commission estimates for the first year of the new period (from April 2025 to April 2026).

Firstlight Network serves 26,355 installation control points (connections to the network, not all of which are homes or businesses), plus 5072 distributed, unmetered load fixtures and 243 metered streetlight fixtures.

Firstlight Network manager George Drysdale said in a statement that it understood it was a tough time for many households and businesses across Tairāwhiti and Wairoa, who continued to face rising living costs.

“We want people to know that this price change is supporting the work we’re doing to strengthen the network and ensure it can meet the growing energy needs of our region,” Drysdale said.

Electricity Retailers’ Association of New Zealand (Eranz) chief executive Bridget Abernethy said household electricity costs had remained flat or declined in real terms over the past decade, according to Ministry of Business, Innovation and Employment (MBIE) data.

“However, 2025 saw pricing increases to reflect the significant investment by Transpower and lines companies to address the rising costs of infrastructure upgrades that will meet growing electricity demand over the coming decades,” Abernethy said.

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“Consumers are impacted where their bills reflect the costs of this investment passed through by electricity retailers.”

Abernethy said the largest contributor to higher bills in 2025 had been transmission and distribution increases.

“Eranz members recognise that this is a challenging time for many households and the sector is working very hard to deliver 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.”

Support measures on offer include dedicated wellbeing teams offering in-house support to vulnerable customers and contributions to programmes like EnergyMate, which supports families in energy hardship and is funded by Firstlight in Wairoa.

Powerswitch manager Paul Fuge said while power prices were relatively flat over the last five years, regulated lines charges set by the Commerce Commission fell during that period, while the actual energy component of bills rose faster than inflation.

According to the latest MBIE data, released in February, the average electricity price in Gisborne was about 14% higher than the national average (40.65 cents/kWh in Gisborne versus 35.7 cents p/kWh nationally).

“Consumer NZ’s research reveals that areas that have the lowest incomes often have the highest power prices. This is certainly true in Tairāwhiti, where incomes are lower and homes are older and colder,” Fuge said.

He believed New Zealanders shouldn’t pay so much for electricity and suggested structural reform was needed.

Fuge advised those who were struggling to contact their power provider and refer to the Consumer Care Obligations, which set out how companies must support customers in difficulty.

Electricity demand in Tairāwhiti and Wairoa is forecast to increase by 68% by 2050, driven by population growth, new developments and the electrification of transport and industry.

Firstlight said it had accelerated its asset renewal programme to meet the rising demand.

That included replacing ageing transformers, circuit-breakers and poles, and maintaining the 110kV transmission towers.

“We’re future-proofing the network so it’s ready for whatever comes next. That means replacing equipment that’s decades old, upgrading key substations in Wairoa and Mahia, and improving our response to extreme weather – all while keeping safety and reliability at the centre of everything we do,” Drysdale said.

Firstlight Network's resilience work includes replacing ageing transformers, circuit-breakers and poles, and maintaining the 110kV transmission towers.
Firstlight Network's resilience work includes replacing ageing transformers, circuit-breakers and poles, and maintaining the 110kV transmission towers.

The company aimed to reduce tree-related outage incidents by 5% each year through active vegetation management.

Drysdale suggested ways households could manage energy use.

“Energy efficiency starts at home. Using LED light bulbs, switching off appliances at the wall, washing laundry with cold water and keeping homes well insulated are all effective ways to reduce power use and your bill.”

Lisa Hannifin, Meridian’s chief customer officer, earlier told the NZ Herald that more than half of Meridian’s customers were on fixed-term contracts and wouldn’t be affected.

According to the MBIE, households pay an annual average of $2343 (about $195 a month) for power.

For winter months, the average monthly power bill is $240 compared with $165 during summer months.

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