Power bills could rise $15 a month to fund network improvements

The Commerce Commission is warning New Zealanders can expect to pay more for their electricity bills from next year.

The caution comes as it releases its draft revenue limits and quality standards for electricity lines companies for 2025-2030.

Due to population growth, and an ageing electricity network, investment in New Zealand’s electricity network is needed to ensure it is reliable and safe.

The increased revenue limits will allow increased investment to improve reliability.

For Transpower, the Commerce Commission is proposing a revenue allowance increase of 15% for 2025 and 2026.

And for local lines companies, the Commerce Commission is proposing a revenue allowance increase of 24% for year one, on average.

Collectively, this represents around an extra $15 on the average household’s monthly electricity bill from April 1 2025 - an additional $180 per year on average across regulated networks.

Monthly bills will then increase by an average of $5 a month for the following four years.

“We are mindful of the impact this will have on consumers,” said Commissioner Vhari McWha.

The Commissioner also raised concerns around Transpower’s ability to deliver the infrastructure improvements needed, due to not being able to find enough skilled workers.

In a statement Transpower said: "We are pleased the Commission has recognised our commitment to ensuring New Zealanders have a safe and reliable electricity grid now and into the future. We will take some time to review the draft decision in detail."