Stay Ahead: All You Need to Know About Electricity Prices in NZ!
Explore our carefully curated collection of guides to stay informed about the latest electricity prices NZ , tips for saving on your energy bill, and insights into the Kiwi energy market
How electricity prices are formed on your bill?
Generation – 38.5%
✔️ Producing the electricity you use.
✔️ Includes hydro, wind, geothermal, and thermal generation costs.
✔️ Regulated by the Electricity Authority, which oversees the wholesale market.
Transmission – 8%
✔️ Building and maintaining the national grid (Transpower).
✔️ Ensures electricity can move long distances across New Zealand.
✔️ Prices and quality regulated by the Commerce Commission; pricing rules set by the Electricity Authority.
Distribution – 24.5%
✔️ Building and maintaining local power lines that deliver electricity from the grid to your home.
✔️ Regulated under Part 4 of the Commerce Act by the Commerce Commission.
Metering – 4.5%
✔️ Reading and maintaining your electricity meter.
✔️ Governed by rules in the Electricity Industry Participation Code, administered by the Electricity Authority.
Retail – 11%
✔️ Your power company’s costs for billing, customer service, and operations.
✔️ Retail competition and consumer protections overseen by the Electricity Authority and Commerce Commission.
GST – 13%*
✔️ The goods and services tax added to your bill (charged at 15%, which equals about 13% of the final bill).
✔️ Set and administered by the New Zealand Government / Inland Revenue Department (IRD).
Levies – 0.5%
✔️ Funds organisations that operate and regulate the electricity market.
✔️ Set by the New Zealand Government and collected by the Electricity Authority.
*The goods and services tax (GST) is applied at 15%, making up about 13% of your total bill.
Percentages sourced from the Electricity Authority (2025): www.ea.govt.nz/your-power/bill/
Regional price differences and their causes
New Zealand’s varied landscape results in differing infrastructure requirements. Regional price differences emerge due to physical challenges and economic conditions. Even towns close to each other can face different electricity prices depending on several underlying factors.
Beyond geography, competition among energy providers or retailers shapes the local marketplace. Some regions offer more choice in power plans, encouraging price comparison and occasionally leading to special deals that help reduce rates.
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