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PRICE INFORMATION
Learn more about what makes up your electricity charges, why prices change, and how to understand your bill.
WHY DO PRICES CHANGE?
Each year, companies along the electricity supply chain review costs and may make changes. We’re adjusting our prices to reflect these changes.
Along the supply chain, there are costs to operate, maintain and upgrade infrastructure. Electricity infrastructure includes the power stations, towers, poles, and lines that deliver electricity to your property. Maintaining and upgrading critical infrastructure helps ensure you continue to receive a safe and reliable power supply now, and as New Zealanders use more renewable electricity in their daily lives.
The Commerce Commission limits the amount that Transpower and most lines companies can earn. These are the companies that provide the infrastructure to get the electricity to your property from where it’s generated. The limits are typically set for a five year period and these have recently been set for 2025 – 2030. These are higher than previous due to increasing costs for material and labour, higher interest rates, and rising levels of investment in the electricity network.
To learn more, visit the Commerce Commission website.
Our price change includes a pass through of the increases to transmission and distribution charges. In addition, there has been an increase in the retail component of your bill. This adjustment reflects the rise in the cost of wholesale electricity and other costs.
Find out more about how energy is changing in Aotearoa New Zealand:
Powering change - Changing the way we power Aotearoa
CHANGES TO LOW USER PLANS
Since April 2022, the Government, with support from the electricity sector, has been gradually removing the Low Fixed Charge Tariff. This change aims to create a fairer, more equitable system in the long-term. Learn more about the low user phase-out.
If you’re struggling to keep on top of your bills, we’re here to help. We'll work with you to find the right payment solution so that you can focus on what matters most to you. Check out ways we can help.
WHAT DOES AN ELECTRICITY BILL PAY FOR?
GENERATION - Producing the electricity you use.
DISTRIBUTION - Building and maintaining the power lines that deliver electricity from the national electricity grid in your local area to your property.
GST - New Zealand’s Goods and Services Tax (GST) is 15% of the pre-GST cost, which equates to 13% of the GST-inclusive amount.
RETAIL - The operating costs of the retailer you're with.
TRANSMISSION - Building and maintaining the national electricity grid which moves electricity around the country.
METERING - Reading and maintaining your electricity meter.
LEVIES - Organisations who operate the electricity market. This includes the Electricity Authority.
WHAT DOES AN ELECTRICITY BILL PAY FOR?
Understanding your Bill charges
In the electricity section of your bill, you can view a breakdown of how your different charge types are calculated based on your prices, usage, and days in your billing period.
The actual electricity you’ve used. This is calculated by multiplying each unit you’ve used (kWh) by your variable price.
Tip: Variable charges depend on the type of meter tariff/s you have at your property e.g. Anytime or Controlled.
Find out more about the types of electricity meter tariff.
A fixed amount each day, no matter how much electricity you use. This is calculated by multiplying your daily price (cents) by the number of days in your billing period.
Depending on when you receive your bill, you may see your new prices on your first bill after the effective date. As your prices change, you may see two sets of charges; charges at your old price, and charges at your new price. After this, your bill will appear as normal.
FAQs
As much as we try to limit increases, it’s increasingly expensive for us to provide electricity to homes and businesses, due to a range of rising costs. Your price change includes larger increases in lines and transmission charges due to rising costs and level of investment in infrastructure required, in line with the Commerce Commission’s price path re-set for the next 5-year period. In addition, there has also been a lift in the retail component, reflecting the rise in the cost of wholesale electricity and other costs.
If Mercury were to absorb these costs, it would impact the amount we can put towards investment in new renewable electricity generation which is key for New Zealand's future as people use more renewable electricity in their daily lives.
We're investing $1 billion in three major renewable projects which are all due to begin generating this year. They include Ngā Tamariki Geothermal Station expansion, Kaiwera Downs 2, and Kaiwaikawe Wind Farm. We also have plans to invest $590 million in hydro refurbishment over the next decade.
We reinvested 56% of our Financial Year 2025 earnings into new and existing renewable assets. These investments are making a meaningful difference to Aotearoa's energy future.
