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Why members should read this:
Electricity is a significant cost for households, property owners and businesses. Understanding what is driving power prices can help members plan household budgets, assess business expenses and make better long-term property decisions.
Story summary:
New Zealand households experienced an 11% increase in electricity prices in the year to March. However, the New Zealand Institute of Economic Research (NZIER) expects future increases to be more moderate, with the main pressure shifting from electricity generation costs to the cost of maintaining and expanding transmission and distribution networks. Although greater renewable generation could help stabilise supply costs, significant investment in electricity infrastructure will still be required. Dry years, reduced thermal generation capacity and increasing demand could also cause unexpected price increases.
3 actions our members could take:
1. Review household and business energy costs.
Look at your electricity usage, compare providers and consider energy-efficiency improvements to help manage future increases.
2. Factor electricity costs into property decisions.
When buying, developing or leasing property, consider the cost of supplying electricity and whether the existing infrastructure can meet future needs.
3. Explore energy-saving opportunities.
Investigate solar, battery storage and energy-efficient equipment to reduce reliance on the electricity network and potentially lower long-term operating costs.
Member discussion:
Do you think rising electricity infrastructure costs will become a bigger issue for New Zealand households, property owners and businesses over the next few years?
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