Electricity Price Change

PRICE INFORMATION.

There are different costs that make up your monthly electricity bill. This includes Mercury's charges, as well as those for generation, transmission, distribution, and metering services.

WHY DO PRICES CHANGE?

Each year, all companies along the electricity supply chain review costs and may make changes. We’re adjusting our pricing to reflect these changes to our costs.

Along the supply chain, there are costs to operate, maintain and upgrade critical electricity infrastructure. Critical electricity infrastructure includes the power stations, towers, poles, and lines that deliver electricity to your property. Upgrading critical infrastructure helps ensure you continue to receive a safe and reliable power supply now, and as Aotearoa New Zealand moves to a low emissions future.

Find out more about Aotearoa New Zealand’s journey to net zero:

Powering change - Changing the way we power Aotearoa

MBIE - Emissions reduction plan

EECA - The future of energy in New Zealand

EA - Powering the future

CHANGES TO LOW USER PLANS

The Government, with support from the electricity sector, is currently phasing out the Low Fixed Charge Tariff regulations over a 5-year period that started on 1 April 2022. Every 30 cent increase in your daily fixed charge will result in a weekly increase of $2.10 for each year of the phase-out. Removing these regulations will create a fairer, more equitable system in the long-term.

More information on the low user phase out

WHAT DOES AN ELECTRICITY BILL PAY FOR?

The average household bill contributes towards the following costs:
Source: Electricity Authority

Breakdown of the costs that the average household electricity bill contributes towards

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.

RETAIL - The retailer’s operating costs that you're with.

GST - New Zealand’s goods and service tax. GST is 15% of the pre-GST cost and therefore 13% of the GST-inclusive amount.

TRANSMISSION - Building and maintaining the national electricity grid which moves electricity around the country.

METERING - Reading and maintaining your electricity meter.

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.

WHEN WILL I SEE THE NEW PRICES ON MY BILL?

Depending on when you receive your bill, you may see your new pricing 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.

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.

Variable charge

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 tariffs.

Daily fixed charge

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.

FINDING IT HARD TO PAY YOUR BILL?

We understand that sometimes it can be hard to stay on top of your bills. Learn more about how we can help, meet our dedicated team, and how to contact them.

payment support

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