Alongside other companies, we generate electricity that flows into the national grid. We generate our electricity from 100% renewable sources through hydro, geothermal and wind. We’ve committed $1 billion in the past 2 years to upgrading our power stations and building new ones. The electricity we generate is sold on the wholesale market, where other retailers, including us, buy power.
38.5 cents of every dollar*
TRANSMISSION
Run by Transpower, these are the power lines that run up and down the length of the country. These lines need to be maintained and upgraded to ensure that power can be distributed from power stations to cities, towns and communities nationwide.
8 cents of every dollar*
DISTRIBUTION
There are around 29 lines companies such as Vector and Northpower, who build and maintain the power lines that deliver electricity from the national electricity grid to your property. Find your lines company.
24.5 cents of every dollar*
RETAIL OPERATING COSTS
Electricity is sold to you via your retailer (e.g. Mercury). This includes costs such as our customer service teams, the software and applications to run our retail business, our app and website, and more which enhances the service we provide.
11 cents of every dollar*
OTHER COSTS THAT CAN AFFECT YOUR BILL
GST
New Zealand’s goods and service tax. GST is 15% of the pre-GST cost and therefore 13% of the GST-inclusive amount.
METERING
These are costs related to reading and maintaining your electricity meter, ensuring your bills are based on accurate usage.
MARKET GOVERNANCE AND SERVICES
Energy efficiency programmes and the operating costs of the organisations who manage and regulate the day-to-day running of New Zealand's electricity market. This includes the Electricity Authority.
*The average household electricity bill contributes towards these costs. Source: Electricity Authority. Note: The above percentages are indicative only as of May 2025 and may not be reflective of current pricing.