Why are business power bills in New Zealand going up in 2026?

Two forces are pulling in opposite directions: delivering power is getting dearer, while the energy itself got cheaper on the wholesale market. Here is each driver as at September 2026, and what you can do.

How much are business power prices rising?

Business electricity prices are up modestly on a year ago, and by less than household prices. Stats NZ's index of electricity sold to businesses was about 3% higher in the June 2026 quarter than in the June 2025 quarter (released 19 August 2026). The index rose 21.8% within the quarter, but it jumps most winters: it rose 20.6% in the June 2025 quarter and 13.8% in the June 2024 quarter. Household electricity prices rose 12.0% over the year to the June 2026 quarter. Stats NZ also noted that "increasing prices for the transmission and distribution of power" pushed up the electricity industry's own input costs.

Electricity Authority bill data shows what smaller accounts actually paid. Between 1 November 2025 and 30 June 2026, prices across households and small businesses rose 6.8% on average, and 7.2% for small businesses whose price changed. Lines charges made up 54% of the increase.

The drivers at a glance

Why are lines charges going up?

Lines charges are rising because the Commerce Commission has allowed networks to recover much more revenue.

Its November 2024 decision, applying from 1 April 2025, set revenue for the lines companies it regulates at $11.5 billion over five years, 47% more in real terms than the previous five, with a first-year rise of about 24% on average. Transpower's allowance is $5.9 billion, up 44%, with annual increases in its allowable revenue capped at 16% in each of the first two years and 5% in each of the last three. Actual charges can move by more, as 1 April 2026 showed (below).

The Commission put about 55% of the increase down to inflation and interest rates. It also cites 1960s and 1970s assets that need replacing, resilience, and demand growth as businesses and households move off fossil fuels.

Transmission and distribution make up about a third of an average household bill: just over 30% on the Commerce Commission's current figure, and roughly 35% on the Electricity Authority's, which puts generation at about 40%. A business's split depends on its connection size and tariff.

What changed on 1 April 2026?

Transmission costs rose again. Transpower's revenue for 2026/27 rose 16.9%, and its charges to lines companies and large directly connected users generally rose 18%. Each lines company decides how to pass them on.

Results vary by region:

Our guide to lines charges explains how they are built, and our regional hubs explain which network serves each area and how its prices moved in 2026, from Auckland to Otago.

If wholesale prices have fallen, why hasn't my bill?

Because many businesses buy on fixed-term contracts priced months or years ahead, and because rising network charges are outweighing cheaper energy.

In the week of 13–19 September 2026, spot prices averaged $39/MWh (3.9 cents per kilowatt-hour) and national hydro storage sat at 82% of nominal full, about 136% of the historical average for the time of year. The equivalent week in 2025 (14–20 September) averaged $122/MWh, with storage at 54% of nominal full.

Contracts lag. The Major Electricity Users' Group told RNZ in July that "a lot of these businesses do long-term contracts", so few members were yet coming off them. Still, the Electricity Authority says contract prices for future years have been falling since January 2026, and its forward-price data, reported by RNZ in July, showed Ōtāhuhu futures for 2027 to 2029 down about 30% in a year. The Authority's July hedge market summary adds that the forward curve now points to prices holding steady or rising slightly over the next three years.

How does the gas shortage affect electricity prices?

Gas affects your power bill even if your business never burns any. Gas-fired generation fills the gap when hydro, wind and solar fall short, and wholesale prices closely follow its running costs. The Electricity Authority calls the decline in domestic gas production since 2018 "one of the most significant influences" on the market over the past decade: the average monthly wholesale price at Ōtāhuhu rose from about $100/MWh (1997–2018) to $160/MWh (2019 to early 2026).

Supply is still shrinking. MBIE reported proven and probable gas reserves of 731 PJ at 1 January 2026, down 23% in a year and the lowest since recording began 20 years ago. When a dry year meets tight gas, prices spike: in August 2024 the monthly average wholesale price in Auckland reached $488/MWh, the highest in market history, according to a study for Gas Industry Co.

The Government is procuring an LNG import facility at Port Taranaki, which MBIE has said could be operating by 2028. On 23 September 2026 RNZ reported that the decision on it, and the contract the Government had intended to sign before the election, have been delayed until after the election. How it will be paid for is still being worked out, after a levy on power bills was ruled out on 9 June 2026.

If your business uses gas directly, see our guide to gas supply and business energy costs and our Taranaki hub, where the gas comes from.

Is the carbon price pushing power bills up?

Not much, for now. Carbon costs reach electricity through gas- and coal-fired generation, but the 8 September 2026 emissions auction received no bids against a $71 floor, and units traded below $50 on some platforms in early September. How carbon reaches fuel and gas costs too is covered in our look at world energy and NZ business power prices.

What can a business control?

You can't control lines charges, rainfall or gas supply. You can control how you buy and use power.

• Time your next contract. Contract prices for future years have been falling since January 2026, so when your contract ends and how long you fix for matter more than a year ago.
• Check your lines price category. Lines charges differ by category, and peak demand matters. Aurora Energy said business customers in Central Otago and Wānaka would carry a higher share of costs because their peak demand had grown faster.
• Use your interval data. Smart meters record use in half-hour blocks, showing when your peaks happen. EECA recommends shifting energy-intensive tasks to off-peak times.
• Compare what you can change. Energy rates and contract terms vary between suppliers; the lines charge underneath is set by your lines company. Our savings calculator shows where your account stands, and our business electricity page explains how we compare it.

Will business power prices come down in 2027?

The energy part of the bill may ease, but the network part is expected to keep rising.

Annual increases in Transpower's allowable revenue are capped at 5% from April 2027, down from 16%. That cap is not a limit on your bill: in 2026/27 Transpower's charges to lines companies generally rose 18%, and how much transmission moves your bill depends on your lines area. The Commerce Commission expects local network costs to keep rising until at least 2030.

On the energy side, the Electricity Authority says projects built recently and under development represent about a 20% jump in annual generation, and that average prices tend to fall as renewable generation grows. A dry winter can still push prices up fast, as 2024 showed.