Electricity lines charges are set to increase by up to $20 per month from the start of April.
Your Power bill is very likely going up this week… from April 1st. Electricity lines charges are set to increase by up to $20 per month from the start of April, following an earlier decision by the Commerce Commission to allow higher charges from the lines companies.
Several pricing changes are happening at once on your power bill, this includes shifts to time-of-use pricing and the continued phase-out of low user tariffs.
What does this mean for you?
Well put simply, it is a good time to review your power plan, as these changes may mean the plan you are currently on is no longer on the most suitable option.
Overall it is forecast that power prices are expected to rise by around 5–10% this year, on top of increases of approximately 12% last year — adding further pressure on household budgets while wars rage in the Middle East driving the cost of petrol and diesel higher and all the associated cost increases that come with that.
It is important to note that there’s no one off price increase on your bill, it’s the aggregation of marginal increases that will see your power bill jump a tangible amount. What households will see an increase on their power bill will vary depending on where they live, what power plan they are on, their retailer and how they use their power. Some household bills will see only a small increase, while others may see a more significant rise, these are likely in the harder to reach areas, more rural locations where line charges are already higher.
The variation in increases across the country comes from the fact there are almost 30 different lines companies in New Zealand and they all have their own lines charges. These vary company to company and so it is more important than ever for consumers to use a power comparison tool to ensure they weren’t paying more than necessary.
Commerce Commission associate commissioner, Nathan Strong said “price increases weren’t coming solely from network charges, with around 40% of the rise driven by retailers passing on their own costs.”
Power prices increased by around 12% in 2025, and from 1 April last year the amount lines companies could charge also rose. While the first step was expected to be the largest, further increases could occur year-on-year through to 2030.
Strong said the Commerce Commission reviews the regulatory price path every five years, assessing the costs required for companies to operate efficiently over that period.
“It’s a balancing act,” he said.
“We’re trying to hit the Goldilocks point — where prices aren’t so high that companies earn excessive profits, but not so low that they can’t invest in critical infrastructure.”
Earlier this week we heard Commerce Commission chairperson Dr John Small on RNZ Morning Report that while the price increases were justified, he acknowledged the timing was difficult for households.
“We are satisfied that the price increases are needed,” he said. “Companies must operate efficiently, but they also need to continue investing to provide reliable service.”
Small added that market structure also plays a role, and indicated support for clearer separation between electricity generators and retailers to ensure fair competition.
“It’s important that generators aren’t favouring their own retail arms when selling electricity,” he said.
Adding to this, NZ Compare CEO Gavin Male said consumers should make reviewing their bills a regular habit – not just for power, but across ALL household services.
“It should be second nature to review your bills every 12 months. Whether that’s broadband, power, or mobile,” he said. “The market is constantly shifting. New entrants come in with aggressive offers to grow, while others focus on consolidating and increasing margins. It’s cyclical.”
Male said periods like Easter are a particularly good time to review costs.
“The new financial year means many providers have already made any price changes, so you’ve got a clearer picture of the market. That gives consumers a bit more certainty in the short term.”
He also noted that customers often have more flexibility than they realise.
“If a provider changes the goalposts mid-contract, for example, increases pricing or alters key terms, that can give you the right to exit without penalty. We see this quite often in broadband, where people assume they’re locked in, but it’s always worth checking. If the terms change, you may be able to move freely.”
In the meantime, consumers are encouraged to shop around using comparison tools to ensure they are on the best plan for their needs.
Visit Power Compare