However, Powerco\u2019s lines charges, regulated by the Commerce Commission, have increased. <\/p>\n
Powerco has upped its lines charges to consumers, in line with regulated Commerce Commission price caps. Photo \/ Powerco<\/p>\n
Last month the company, which doesn\u2019t publish full annual results, reported earnings before interest, tax, depreciation, amortisation and fair value adjustments of $415m in the year to March 31, up from $341m the previous year. <\/p>\n
On April 1, 2025, the Commerce Commission approved an allowable 45% price increase for electricity distributors in the five years to 2030. <\/p>\n
In the first half of this year, power bills across New Zealand households and small businesses rose by an average 6.8%<\/a>, driven largely by higher lines charges (covering distribution companies and the transmission company Transpower), the Electricity Authority reported last week. <\/p>\n There was an 8% price increase in 2025. <\/p>\n Taylor said the price rise \u201csupports higher levels of investment for reliability and growth, as well as adjusting or changes in interest rates and operational costs\u201d. <\/p>\n Powerco is owned by Australian interests: 51% by funds managed by Sydney-based asset manager Dexus and 49% by the major pension fund, Australian Retirement Trust. <\/p>\n Margaret Cooney, chief operating officer of electricity retailer Octopus Energy, said PNZHL\u2019s profit increase was also likely a function of the increased revenue cap allowed by the commission and that Powerco\u2019s prices are in the \u201cupper mid pack\u201d of lines companies. <\/p>\n Since the regulator lifted the price cap, Powerco\u2019s prices have risen by about 8% according to Cooney, which she said was consistent with the regulator\u2019s allowances. <\/p>\n She said increased profits and prices are a \u201crough combo\u201d for consumers, but those who shift their usage to off-peak prices and who (if they have electricity generation) shift their export to the grid to peak demand times can shave their costs. <\/p>\n She also said Powerco is working on how consumer batteries and demand management can be better rewarded, which she described as encouraging. <\/p>\n The bulk of Powerco\u2019s business is in electricity; its lines connect the transmission network, operated by Crown-owned Transpower, and electricity-using customers, largely made up of households and businesses. <\/p>\n Its network includes Coromandel, Bay of Plenty, South Waikato, Taranaki, Whanganui, Manawat\u016b and Wairarapa.<\/p>\n Likewise, it receives natural gas from the network operator, First Gas, and distributes it through a reticulated grid to end customers. <\/p>\n Reticulated gas and electricity lines businesses operate as regional monopolies and are regulated across areas including revenue, pricing and reliability. <\/p>\n NZX-listed Vector, the country\u2019s largest gas and electricity distributor, reports full-year results on Tuesday.<\/p>\n New Zealand\u2019s high electricity prices have become a political hot potato<\/a> in recent years. <\/p>\n New Zealand First and the Green Party are taking plans to break up the country\u2019s large electricity generator-retailer businesses into the November election. <\/p>\n Lines companies such as Powerco form a large part of the electricity cost for households, but have attracted relatively little attention; their charges amount to some 25% of residential electricity bills. <\/p>\nOctopus Energy chief operating officer Margaret Cooney says rising profits and prices are a \u201crough combo\u201d for power consumers. Photo \/ Mark Mitchell<\/p>\n