Consumer NZ expects power prices to increase by about 5% in 2026 – a blow to households already hit with a 12% increase to power bills last year.
Households should brace for another big bump in power prices in the year ahead. The price predictions from Consumer NZ come at a time when nearly half of all New Zealanders are concerned about the cost of their household energy.¹
“Power bills are hiking up because of an increase in lines charges’ costs – that’s the cost of delivering power to your house, and it’s the amount on your bill that stays the same regardless of how much power you use,” said Paul Fuge, Powerswitch manager.
The lines charge makes up just over one-third of the power bill, and a small hike to that fixed cost makes a big difference to monthly bills.
Consumer recommends budgeting for an increase to power bills from the end of April. Customers can expect line charges alone to climb by an average of $5 per month through to 2029.
“The lines charge will add an average of $5 per month to your bill, but this figure will vary depending on where you live and who your retailer is. As well as the fixed costs, we expect consumers will face increases to the cost of the electricity they use too,” said Fuge.
Why power prices keep going up
The cost of running and maintaining the electricity networks has increased, and this cost flows through to people’s power bills.
“It’s an unfortunate reality that households are being asked to shoulder higher charges to have electricity delivered to their homes. But at the same time, heavy rainfall over summer – so extensive that major hydro lakes are spilling water –has driven down wholesale electricity prices. Those lower generation costs should be easing the pressure on consumers by offsetting these rising lines charges. That doesn’t seem to be happening. And that’s deeply unfair.”
The impact of ever-increasing power bills
Consumer’s research found that, last winter, one in five New Zealanders went to bed early to stay warm, one-quarter of people went without heating when it was cold and nearly one in five people cut back on food or other essentials to pay a power bill.²
“These drastic measures to manage power bills are not limited to one age group – young adults, older New Zealanders and everyone in between are being forced into uncomfortable and sometimes unsafe choices.
“Based on our price predictions for 2026, we think the situation will only get worse,” says Fuge.
Consumer’s tips for managing power price surges
Check you’re on the cheapest plan – Power retailers are constantly changing their offers. Just because you picked the cheapest plan last year, it doesn’t mean it’s the best plan available now. You can find if there’s a plan that’s better for you through the free and independent power comparison website Powerswitch.
Keep your eye out for April price rises – Power retailers typically increase their prices from April. Mark a date in your diary for after 1 April to check in with Powerswitch to see if there are further savings you could make by switching then.
Understand your power usage – If you can do most of your power-hungry activities, like running your washing machine and dryer, in off-peak periods, you could make big savings. Off-peak periods are usually late at night, the middle of the day and weekends. You need to be on a time-of-use plan to save the most from your off-peak power usage. Being careful with when you use your power could potentially help you offset the price rises that we are predicting.
Notes
¹ Consumer NZ Sentiment Tracker January 2026
² Consumer NZ Sentiment Tracker October 2025
Consumer NZ’s Sentiment Tracker is an online survey based on a nationally representative sample of the New Zealand population. Results are weighted by age, gender and region based on Stats NZ 2018 Census data. Respondents are sourced from Dynata, an external panel provider. Surveys are conducted quarterly with at least 1000 respondents, with a margin of error of +/-3.1%.
