Hibiscus Coast residents may have recently received an email from their electricity supplier, such as Mercury Energy, notifying them of a price increase set to take effect from 1 April 2025.

This change, part of the company's annual review of its pricing structure, aims to reflect adjustments in the costs across the electricity supply chain.

The increase will result in an estimated $0.45 per day increase for many customers, including GST, though the actual impact may vary depending on usage.

Mercury Energy states that the new rates will be reflected in the daily fixed charge and per-kWh usage rates.

Specifically, the daily fixed charge will rise from $1.20 to $1.50, and the cost of electricity usage (anytime rate) will increase from $0.2520 per kWh to $0.2655 per kWh.

The company has simplified its billing structure, with the Electricity Market Fee no longer being separately itemised.

Instead, it will be integrated into the variable rates that customers pay for the electricity they consume.

These changes will appear from April, though the prices themselves exclude GST and are subject to discounts, which some customers may be eligible for.

This price increase is part of wider changes in the electricity sector, including adjustments to transmission and distribution charges, driven by rising infrastructure costs and investment in the network.

Additionally, the retail component of the bill has increased due to a rise in the cost of wholesale electricity.

The Commerce Commission has set new revenue limits for Transpower and other lines companies, which will affect the cost of providing electricity from 1 April 2025.

One notable shift for some residents will be the continued phase-out of the low user pricing plan, which began in 2022.

This change, supported by the Government and the electricity sector, will gradually increase the daily fixed charge until it is fully phased out by 2027.

Residents on the low fixed charge plan can expect weekly increases, with each $0.30 rise in the daily charge equating to an additional $2.10 per week.

Locals should keep an eye on their upcoming bills for these changes, which will affect the overall cost of electricity from April onward.

For further information, residents can visit the Commerce Commission website or contact Mercury Energy directly.

Have a story to share from your neighbourhood? We’d love to hear from you! 

Send your news tips and stories to [email protected]