DTNZ: Power bills set to rise as network costs push prices higher

Meridian Energy says household electricity bills could increase by up to seven percent this year, driven largely by rising lines and transmission charges rather than wholesale energy costs.

The company reported a half-year profit of $227 million after a loss the previous year, with chief executive Mike Roan stating that regulated infrastructure costs set by the Commerce Commission were higher than expected and would continue flowing through to consumers over coming years.

While Meridian says energy price increases remain close to inflation and the company has worked to cushion customers from volatility, network-related charges must largely be passed on.

Roan said government plans to introduce liquefied natural gas imports, alongside existing reserves and demand-response measures, should help reduce electricity supply risks during dry years, with forward wholesale power prices already easing as new investment and generation projects progress toward Meridian’s target of multiple developments under construction by 2030.

Daily Telegraph New Zealand (DTNZ) is an independent news website, first published in October 2021. - where this article was sourced.