Power prices throughout New Zealand are set to rise on April 1, as retailers pass on increasing network charges and wholesale energy prices.
Most Otago consumers will pay between 2.4% and 10.4% more for their power, depending on which company they are with.
Powershop announced yesterday its prices would rise, on average, 10% in Dunedin, 10.4% in Cromwell, and 9.6% in Queenstown, although discount packages would be available.
Powershop chief executive Ari Sargent said Transpower's national grid upgrades were being passed on to lines companies, which were in turn passing them on to retailers.
South Island wholesale prices were also being affected by uncertainty around supply when the Cook Strait cable was upgraded, and "current dry conditions".
Contact Energy spokesman Jeremy Seed said the average price increase for the company's 14,500 Dunedin customers, would be 2.4%.
"We attach no margin or energy cost to that. It's purely the pass through from the lines companies," he said.
He could understand why customers would be unhappy with a price increase, but the work being done by Transpower to upgrade the nation's power network was "fantastic".
"The grid needs a lot of work."
Meridian Energy and Mercury Energy made similar price hike announcements last month.
Meridian prices will increase 2.6% in Dunedin, 5.7% in Central Otago and 7.3% in Queenstown.
General retail manager Bill Highet said the rises reflected increases from network companies and Transpower.
"The country's network companies have told us they are increasing their fees for the services they and Transpower provide for grid and upgrade maintenance projects," he said.
Mercury prices will rise an average of 5%, which included an increase for lines charges, and another for energy prices.
General manager James Munro said "investment in electricity infrastructure is essential".
TrustPower only carried out price reviews once a year, community relations manager Graeme Purches said.
For Dunedin and Central Otago, this would be about October, and for South Otago, Maniototo, Waitati and Palmerston, it would be about May.
How the system works
National grid
• Owned and operated by Transpower.
• The system of lines taking power from generators to local network companies.
• From April 1, Transpower to increase charges to network companies.
• Network companiesOwn and operate regional power line networks taking power from national grid properties.
• 29 network companies in New Zealand which all charge electricity retailers a fee which includes the Transpower charges, and charges to operate and maintain their network.
• Most have increased their charges to electricity retailers.
Retailers
• Buy electricity from wholesale market to sell to residential and business users.
• Charges include the companies' charges, the cost of electricity and retail services, and network charges, distribution and transmission charges.
Source: Meridian Energy
Most Otago consumers will pay between 2.4% and 10.4% more for their power, depending on which company they are with.
Powershop announced yesterday its prices would rise, on average, 10% in Dunedin, 10.4% in Cromwell, and 9.6% in Queenstown, although discount packages would be available.
Powershop chief executive Ari Sargent said Transpower's national grid upgrades were being passed on to lines companies, which were in turn passing them on to retailers.
South Island wholesale prices were also being affected by uncertainty around supply when the Cook Strait cable was upgraded, and "current dry conditions".
Contact Energy spokesman Jeremy Seed said the average price increase for the company's 14,500 Dunedin customers, would be 2.4%.
"We attach no margin or energy cost to that. It's purely the pass through from the lines companies," he said.
He could understand why customers would be unhappy with a price increase, but the work being done by Transpower to upgrade the nation's power network was "fantastic".
"The grid needs a lot of work."
Meridian Energy and Mercury Energy made similar price hike announcements last month.
Meridian prices will increase 2.6% in Dunedin, 5.7% in Central Otago and 7.3% in Queenstown.
General retail manager Bill Highet said the rises reflected increases from network companies and Transpower.
"The country's network companies have told us they are increasing their fees for the services they and Transpower provide for grid and upgrade maintenance projects," he said.
Mercury prices will rise an average of 5%, which included an increase for lines charges, and another for energy prices.
General manager James Munro said "investment in electricity infrastructure is essential".
TrustPower only carried out price reviews once a year, community relations manager Graeme Purches said.
For Dunedin and Central Otago, this would be about October, and for South Otago, Maniototo, Waitati and Palmerston, it would be about May.
How the system works
National grid
• Owned and operated by Transpower.
• The system of lines taking power from generators to local network companies.
• From April 1, Transpower to increase charges to network companies.
• Network companiesOwn and operate regional power line networks taking power from national grid properties.
• 29 network companies in New Zealand which all charge electricity retailers a fee which includes the Transpower charges, and charges to operate and maintain their network.
• Most have increased their charges to electricity retailers.
Retailers
• Buy electricity from wholesale market to sell to residential and business users.
• Charges include the companies' charges, the cost of electricity and retail services, and network charges, distribution and transmission charges.
Source: Meridian Energy
