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, 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 just been set for 2025 – 2030. These will be 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. To see the impacts to your region, visit our handy map.

Find out more about how energy is changing in Aotearoa New Zealand:

Powering change - Changing the way we power Aotearoa
EECA - The future of energy in New Zealand
EA - Powering the future
MfE – Second emissions reduction plan

CHANGES TO LOW USER PLANS

How could this impact me?

The Government, with support from the electricity sector, is phasing out the Low Fixed Charge Tariff regulations. We’re now in the fourth year of the five-year phase-out which 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.

Learn more about 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

Breaking down the costs

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 operating costs of the retailer you're with.

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.

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.

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.

When will I see the new prices on my bill?

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

I'm on a fixed-term agreement. Does the price change apply to me?

Some of our fixed-term agreements have set prices for the term of the agreement, and some of them allow for prices to be changed with 30 days' notice. If you’ve received a price change notification, your pricing is subject to change with 30 days' notice. For more information, please refer to your Offer Terms sent to you at the start of your fixed-term agreement, and our General Terms.

Why are prices increasing when profits are so high?

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.

Why isn't Mercury able to absorb the increase?

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.

How much is Mercury investing in renewable energy?

We’ve committed $1 billion to new renewables in the last 2 years. We’re currently building new wind farms in Southland and Northland and expanding one of our geothermal power stations near Taupō – adding enough to power up to 142,000 houses. We’re reinvesting nearly half (46%) of our half-year 2025 earnings into new and existing assets to increase the level of renewable energy we can supply to New Zealanders, as well as increasing the security of supply for the country.  

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.

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