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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?
Electricity has a complex journey before it reaches your home — from generation at power stations through to national transmission, local lines, and metering. The cost of building, maintaining, and upgrading this infrastructure changes over time, and these shifts flow through into the price you pay.
The Commerce Commission sets how much Transpower and most lines companies can recover for their services. These limits are reviewed every five years and were reset for 2025–2030. They are higher than before due to rising costs for materials and labour, higher interest rates, and increased investment needed in New Zealand’s electricity network. To learn more, visit the Commerce Commission website.
Our new prices include these transmission and distribution charges. In addition, the retail portion of your bill has risen to reflect higher wholesale electricity costs and other expenses.
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. We’re now in year four of the five-year phase-out. This change aims to create a fairer, more equitable system in the long-term. Learn more about the low user phase-out.
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
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.
