Power prices in New Zealand – what you can expect to pay in 2026
We’ve looked into what New Zealanders are paying for power at the moment and what’s been happening with prices over the last few years. Learn what we think will happen to prices in 2026 and 3 things you can do to make sure you’re not paying more than you need to.
Power prices keep increasing
Currently, on average, New Zealanders are paying 39.3c/kWh for their power. But you could be paying more or less than that depending on what power plan you’re on and where you live in the country.
The average cost of power is higher in some parts of the country – those in Kerikeri and Balclutha pay the most with an average of 48c/kWh. Wellington has the lowest average price of 34.61c/kWh.
Three years ago, New Zealanders were paying around 7c/kWh less for power. Power prices have risen 21% in that short time.
Last year’s jump was particularly steep – 12%. If you have gas as well, the cost of powering your home jumped even more - its cost went up 17.5%
It’s looking likely that bills will go up again this year – but it probably won’t be such a steep rise.
What’s going to happen with power prices in 2026?
Paul Fuge, manager of Powerswitch, the free and independent energy provider comparison website, explains the biggest pressure on power bills was coming from lines charges. That’s the portion of your bill that covers the costs of delivering power to your home. It’s a set amount; it isn’t affected by how much power you use.
Power prices change all the time, but 1 April is typically the day when we’ve noticed a lot of power companies hike their prices. So, by the end of April, you could be noticing the jump in prices in your power bills.
“We are predicting that prices will increase by about 5% in 2026 although we’re already seeing some retailers put them up more. This will be a further blow to households already struggling with recent price increases,” Paul says.
“The extent of increases and the exact effect on your bills will depend on where you live and what power company you’re with. But, we think you should budget for a monthly increase from the end of April onwards.”
Why power prices are going up
“The cost of running and upgrading the electricity networks has increased a lot over the last few decades. Those costs are going to flow straight through into your power bills,” Paul says.
About a third of your power bill relates to the delivery of electricity to your home, so even small hikes can make a big difference.
Line charges jumped about $10 a month last year – in some regions it was up to $25 a month. And they are due to keep jumping an average $5 a month – so $60 a year - until 2030.
“These line increases are an unfortunate reality. They come at a time when consumers are facing increasing costs in many other areas. And we know people are already finding it hard to pay all their bills,” Paul says.
Any increase to the energy charge, the actual price of electricity itself, would be on top of the line charge.
Take these 3 steps now to get cheaper power bills
Check you’re on the cheapest plan.
Powerswitch makes it easy to quickly check if there’s a better power plan you could be on.
Power companies are changing their offerings all the time. You might have found the cheapest plan for you a while ago – but you might be able to do better now.
Don’t fool around – be ready for the 1 April changes.
You might decide to stay with your power company for now. But mark 1 April in your diary and check Powerswitch then to see if anything more suitable has come up.
Power companies often roll out their new rates at this time. The market can change a lot and quickly. That’s why it’s important to keep checking if you could be paying less.
Understand how you use power.
We think it’s worth considering a time-of-use power plan if you’re able to move your power use to off-peak times.
Time-of-use bills reward those who shift their power use away from peak times. They offer cheaper rates for off-peak times – usually late at night, during the middle of the day or on weekends.
We think there’s the potential to make big savings if you’re able to shift the time of your power use. Those savings could offset many market price rises.
