Average Electricity Costs per kWh in NZ

We all rely on electricity in our day-to-day lives. And whether you are watching TV, running a heat pump, or putting on a load of washing – you’re adding to your power bill.

The overall cost of your electricity is broken down into two main parts. You pay for the actual electricity you use, plus a fee for the upkeep of the power grid that delivers that juice into your home.

Nationally, the average power consumer (four-person family) using 22kWh per day on the cheapest low-user tariff available without a fixed-term contract, pays around 35.67c per kWh.

However, depending on where you live in the country, the price can vary between as low as 31.93c per kWh, in Christchurch, to 45.42c per kWh in Kerikeri and 45.45c in Westport.

Of course, you can't do much about where you live, apart from move. So keeping on top of your usage charges is essential if you want to reduce your power bill. That’s why it’s important to do your research to find a good deal on the power you use.

But what exactly does a good rate look like in your area? In this article, we break down the average electricity costs by kWh and line fees region to region, and provide tips on how to find a great deal.

Power prices per kWh

The per kWh price refers to the cost of the power you use. The table below shows the average regional rates for electricity across the motu.

Data: www.mbie.govt.nz Quarterly Survey of Domestic Electricity Prices to February 15, 2025.

As you can see, the rate you pay for electricity varies considerably depending on your region. While you might not think a few cents makes much difference, the costs add up over a year – especially for households using plenty of electricity.

Lines vs energy component

While there's quite a variance in the cost of the electricity we consume, from 21.35c to 27.74c around the country, there's an even bigger disparity in the prices we pay for the line component of our power bills.

In Cromwell 20.51c per kWh goes towards line component costs, whereas consumers in Nelson pay only 8.49c. That's quite a difference.

Line charges are the cost of the infrastructure required to get electricity from the power station to your home. You can see the average costs below:

Data: www.mbie.govt.nz Quarterly Survey of Domestic Electricity Prices to February 15, 2025.

Why is there such a big difference in line component costs?

The cost of delivering power to your home differs depending on where you live, due to the following reasons:

• Population density – costs are split across consumers. The more consumers to bear the line costs, the lower they will be.
• Distance from power station – how far the power needs to travel (from the nearest power station) dictates the level of infrastructure needed, and the cost of maintaining that infrastructure.
• Terrain – do the power lines need to traverse mountains or forest, or through flat urban areas?
• Commercial/industrial users – commercial and industrial businesses consume a lot of energy and are typically supported with significant infrastructure. A large presence/absence of them in your region can impact lines costs.
• Competition – there are over 30 lines companies in New Zealand that are in charge of the infrastructure needed to deliver power to your home. But some regions are only serviced by one. These companies face no competition or incentives to keep their prices low.

Total costs

When you combine the two sets of prices listed above – the line charges and energy costs – you get an overall picture of electricity costs around the country. And, as you can see, there's a big difference between living in Christchurch and places such as Westport and Kerikeri, where power is over 13c more expensive per kWh.

And unfortunately, power prices are likely to rise considerably over the next five years. For more on the price rises see below.

Data: www.mbie.govt.nz Quarterly Survey of Domestic Electricity Prices to February 15, 2025.

Rising power bills

Over the next five years all Kiwi households will face higher power costs, for two main reasons:

• A rise in transmission costs
• The scrapping of the low-user electricity tariff

Rise in transmission costs

Transmission and line costs are regulated by the Commerce Commission. And due to inflation and rising levels of investment in the power network, the lines companies have been given permission to raise their prices over the next five years.

As we show above, lines charges vary depending on where you live, but over the next year, the average monthly increases power customers can expect range from $11.50 to $28.75 per month.

Here's a breakdown of the price increases you can expect from your local lines company:

And the price hikes are not just limited to the first year of the five-year review period. Over the next four years, the Commerce Commission has approved further additional annual price hikes of, on average, between $5.75 and $17.25 per month:

Scrapping of the low-user electricity tariff

Power bills for many people are also increasing due to the scrapping of the low-user electricity tariff.

The five-year phase-out is designed to make the electricity market fairer. But it means that low-user power consumers are facing annual price hikes due to higher daily charges: roughly an extra 0.35c per day, which works out to $126 per year.

The annual price rises kick in each April 1, and this year marks the fourth year of the phase-out, so there's still one more round of price hikes to go, in 2026.

Understanding what you pay

Discovering exactly how much you're paying for your electricity, shouldn't be tricky. Your daily fixed charge rate and your total variable usage charge should be clearly shown on your bill. Along with a small Electricity Authority levy, which goes towards running the government agency.

But it certainly pays to do your research, compare energy companies and shop around.

To find the rates of an electricity retailer, visit its website and look for a pricing section. Most retailers require you to insert an address, though some just need to know your general area to give you an idea of your rates.

Be conscious of a few traps, so ask yourself some of the following questions when comparing rates:

• Do these prices include GST?
• How frequently do rates change?
• What type of tariff is this?
• Does this retailer offer discounts?
• Are there additional fees?
• Does this contract lock me in?
• Are there any additional perks?