Household power bills up 8% this winter, network costs key driver

The Electricity Authority reports an 8% average increase in household power bills, with network charges accounting for up to 45% of the rise.

Household power bills rose an average 8% this winter, matching last year's increase, according to the Electricity Authority.

Network charges drove 40 to 45% of the overall increase. Electricity Retailers' and Generators' Association chief executive Bridget Abernethy said tight wholesale supply and network costs both contributed to higher bills.

"What we've seen is a decline in gas and tight hydro conditions which push the prices up," Abernethy said.

The four major electricity companies – Contact, Genesis, Meridian and Mercury – are projected to earn a combined $1.86 billion in operating earnings for the six months ended December 2025, according to investment firm Forsyth Barr. That compares with $1.28 billion in the same period a year earlier.

Abernethy said investment in new generation should flatten prices over time. "What's happening now is that those profits fund new generation, so that's critical to flatter prices in the future," she said.

The four companies declined to appear on Morning Report.