Source: Radio New Zealand
The Commerce Commission believes the electricity price increase is justified. RNZ
The Commerce Commission is warning households that the price of power is set to increase about 5 percent.
Retailers have started notifying customers – citing maintenance and upgrades, higher wholesale prices, gas supply decline, and inflation.
In February, Consumer NZ warned that power prices could rise at least 5 percent this year saying that was a conservative estimate.
There was a 12 percent increase in power prices in 2025 and as of 1 April last year the amount lines companies could charge increased. The first step was predicted to be the biggest but there could still be changes year on year through to 2030.
While Commerce Commission chairperson Dr John Small believed the increase was justified, he acknowledged it came at a terrible time.
He also said the monopoly, as well as the generation and retailing component, played a part.
“We are satisfied that the price increases are actually needed,” Small told Morning Report.
“They need to manage very efficiently, but they do need to keep investing in the capacity that they need to provide reliable service.”
Small hoped that something like electricity suppliers being split into generators and retailers would happen.
“It’s really important for us, with our competition hat on, to make sure that something a little bit like this happens, so that the generators are not favouring their own retail arm when they’re selling electricity.”
In the mean time, he suggested using a price comparison tool to shop around.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
