In 2024, the average cost of electricity for residential use was around ***** New Zealand cents per kilowatt-hour. This was a slight increase in the cost of electricity reported in the previous year. New Zealand’s electricity consumption While the leading sector to consume electricity in New Zealand is the residential sector, the industrial electricity consumption follows closely. A slight decrease in consumption has been observed in both sectors. Although the main primary energy supply of New Zealand is sourced from oil, the electricity generation of the country has already become much greener. New Zealand uses an increasing share of renewable energy in its electricity sector, with almost ** percent of the electricity production generated by renewable energy. Leading energy source: Hydropower In the distribution of energy sources used for electricity production, hydroelectric power plants generated more than half of the country's electricity. The production of electricity from hydropower has been rising significantly, while the country saw a decline in the use of fossil fuels. The increased use of hydropower can also be linked to climate change. In 2022, New Zealand experienced the warmest and wettest year on record, resulting in high hydrolake inflows.

New Zealand NZ: Industry Electricity Price: USD per kWh data was reported at 0.090 USD/kWh in 2023. This stayed constant from the previous number of 0.090 USD/kWh for 2022. New Zealand NZ: Industry Electricity Price: USD per kWh data is updated yearly, averaging 0.070 USD/kWh from Dec 1990 (Median) to 2023, with 34 observations. The data reached an all-time high of 0.100 USD/kWh in 2021 and a record low of 0.060 USD/kWh in 2001. New Zealand NZ: Industry Electricity Price: USD per kWh data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s New Zealand – Table NZ.OECD.GGI: Environmental: Environmental Policy, Taxes and Transfers: OECD Member: Annual.

In 2024, the average cost of electricity for industrial use was around **** New Zealand cents per kilowatt hour. This was an increase in the electricity cost compared to the previous year.

In 2024, the average cost of electricity for commercial use was around ***** New Zealand cents per kilowatt hour. This represented an increase in the electricity cost in that sector compared with the previous year.

The QSDEP is a price indicator series that complements sales-based electricity cost data. The QSDEP indicator is a measure of how the published residential electricity tariffs have changed over time.

Electricity retailers have performed reasonably well over the past five years despite flat demand and pricing at the height of the COVID-19 pandemic, which led to declines in revenue in real terms in 2019-20 and 2020-21. Over the two years through 2023-24, industry revenue is expected to rebound strongly, with pricing and demand growing at some of the fastest rates witnessed in the past decade. Retail prices, which remained stagnant even as wholesale electricity prices soared in 2019-20 and 2020-21, have started to make up lost ground, rising even as wholesale prices corrected in 2022-23. Overall, industry revenue is expected to rise at an annualised 1.8% over the five years through 2023-24, to $9.0 billion. This includes an anticipated increase of 9.7% in 2023-24, in line with rising wholesale prices and growing net energy consumption.Significant regulatory changes in the electricity sector have changed the industry's structure over the past 15 years. Greater oversight by regulatory bodies and moves to encourage competition through controls against monopolistic pricing have drawn several new enterprises to the industry over the past five years. While the four largest retailers are expected to control approximately two-thirds of industry revenue in the current year, this proportion has significantly declined from a market share of approximately 99% in 2004-05. Medium and small enterprises have expanded at a faster rate than the larger players over the past five years. Changing conditions have prompted major incumbents to change strategies, with Mercury NZ Limited acquiring former major player TrustPower's retail business in May 2022.Persistently strong wholesale prices and steady growth in demand are expected to drive moderate growth in industry revenue over the next five years. The potential closure of the Tiwai Point Aluminium Smelter will also pose a threat to industry revenue, as it would cause a flood of supply to the electricity market that would likely severely diminish electricity prices. The plant was scheduled to close in 2024, but there are ongoing talks to keep it open until 2039. Industry revenue is forecast to rise at an annualised 3.9% over the five years through 2028-29, to $11.0 billion.

Summary

This schedule presents the results of the Ministry's Quarterly Survey of Domestic Electricity Prices (QSDEP).This schedule presents the results of the Ministry's Quarterly Survey of Domestic Electricity Prices (QSDEP).

Note

      This content was directly extracted
      from the New Zealand government's website:
      http://www.newzealand.govt.nz/ by a machine,
      please refer to the source for accurate and
      timely information.

New Zealand Consumer Price Index (CPI): Weights: HU: Household Energy: Electricity data was reported at 3.620 % in Jun 2018. This stayed constant from the previous number of 3.620 % for Mar 2018. New Zealand Consumer Price Index (CPI): Weights: HU: Household Energy: Electricity data is updated quarterly, averaging 3.910 % from Jun 2006 (Median) to Jun 2018, with 49 observations. The data reached an all-time high of 4.030 % in Jun 2017 and a record low of 3.290 % in Mar 2008. New Zealand Consumer Price Index (CPI): Weights: HU: Household Energy: Electricity data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.I004: Consumer Price Index: Weights.

Operators in the Geothermal, Wind and Other Electricity Generation industry have faced volatile trading conditions, but very beneficial pricing conditions over the past few years. Disruptions to hydroelectricity and natural gas power stations have caused supply issues, which have led to a sustained period of elevated prices on the wholesale market. Prices have not fallen below $100 per megawatt hour since 2018-19, peaking at an estimated $171 per megawatt hour in 2021-22. In the decade prior to 2018-19, the average annual price on the wholesale market was approximately $67 per megawatt hour. This significant price growth has underpinned a surge in profitability across the industry. High prices also allowed the industry to offset higher costs, as revenue growth outstripped cost increases, while profit margins were also rising. Despite healthy prices overall, disruptions to demand in 2019-20 and a sharp drop in wholesale prices in 2022-23 weighed on industry-wide performances. Overall, industry revenue is expected to increase at an annualised 2.2% over the five years through 2025-26, to $2.2 billion. This trend includes an anticipated fall of 5.2% in 2025-26, driven by a drop in wholesale electricity prices after surging growth the previous two years. Electricity generated by firms in this industry is an increasingly crucial feature of New Zealand’s national electricity mix. Wind and geothermal generators are essential for New Zealand to meet its renewable energy targets. This trend has encouraged several fossil fuel power plants to close, while investment in renewable electricity assets has soared. Key electricity generators, like Meridian and Mercury, have shifted entirely to renewable sources, many of which are included in this industry. The fastest growing segments are wind and solar, which have enabled opportunities for new entrants and driven an increase in enterprise and establishment numbers. Industry revenue is forecast to grow at an annualised 6.2% over the five years through 2030-31, to $2.5 billion. Persistently high prices are expected to meet growth in new generation capacity, especially in the fast-growing segment of wind. A recent long-term power supply contract is set to support the operation of the Tiwai Point Aluminium Smelter until 2044. The potential closure of the smelter has posed a major risk for the industry. It accounts for over 10% of New Zealand's total electricity consumption. If the smelter were to close, wholesale electricity prices would likely plummet, and profitability in this industry would follow suit.

Graph and download economic data for Consumer Price Index: OECD Groups: Energy (Fuel, Electricity, and Gasoline): Total for New Zealand (CPGREN01NZA657N) from 1960 to 2022 about New Zealand, fuels, electricity, energy, gas, CPI, price index, indexes, and price.

The statistic depicts the distribution of the average power bill in New Zealand as of 2018, by associated costs. As of this year, around ** percent of an average power bill in New Zealand went towards the cost of generating the electricity used.

Producer Price Index: Weights: Input: Electricity, Gas and Water: Electricity and Gas Supply data was reported at 3.200 % in 2024. This records an increase from the previous number of 2.800 % for 2023. Producer Price Index: Weights: Input: Electricity, Gas and Water: Electricity and Gas Supply data is updated yearly, averaging 3.750 % from Mar 2015 (Median) to 2024, with 10 observations. The data reached an all-time high of 4.700 % in 2015 and a record low of 2.800 % in 2023. Producer Price Index: Weights: Input: Electricity, Gas and Water: Electricity and Gas Supply data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.I015: Producer Price Index: Weights.

The Ministry monitors national residential electricity costs using information about national electricity sales (essentially total electricity sales divided by the quantity of electricity supplied in kWh).

Consumption of electricity in New Zealand was dominated by the industrial sector, holding a ** percent share of total consumption. Within the industrial sector, basic metal mining had the highest electricity demand.

New Zealand’s electricity supply

Over ** percent of the electricity generated in New Zealand came from renewable sources. The country has one of the highest renewable energy production shares in the OECD. Included in the country’s leading green electricity sources were hydro, geothermal, and wind energy. From these, the electricity generated from hydropower amounted to the largest volume. While not the dominant source of electricity, coal was a commonly used fossil fuel for electricity supply.

The price of power

The average cost of electricity for industrial consumers increased around ** percent over the last decade. Industrial consumers paid the lowest rate per kilowatt hour, with commercial customers paying just slightly more. Furthermore, residential consumers had to pay about double that of what industrial consumers paid. With increasing costs of electricity in the residential sector, there has been a high volume of households switching their electricity provider in order to obtain lower rates.

In 2024, the average price of residential natural gas was around ***** New Zealand cents per kilowatt hour. This marked a price increase of *** New Zealand dollar per kilowatt hour compared to the previous year.

This report analyses the price paid by commercial consumers to acquire electricity. The data for this report is sourced from Stats NZ (Tatauranga Aotearoa). The historical data for this report uses the average value of a quarterly index over each financial year and is measured in index points. The electricity service price is presented as an index with a base year of 2023-24.

This report analyses the wholesale price of electricity in the spot market. The prices shown are an average across all market regions in New Zealand (Aotearoa) and are sourced from the Electricity Authority (Te Mana Hiko). The historical data for this report uses the monthly demand-weighted average over each financial year and is measured in dollars per megawatt hour.

The Hydro-Electricity Generation industry has exhibited high volatility in recent years, driven by unpredictable wholesale markets affected by fluctuating gas supply, inconsistent hydro levels and escalating commodity prices. This volatility was particularly prominent during 2020-21 and 2021-22 when significant gaps in gas supplies led to price fluctuations and heightened uncertainty for generators and consumers. However, hydro generators benefited from rising wholesale prices due to their limited reliance on fossil fuels, leading to significant industry-wide profitability. Record-high rainfall levels in 2022-23 led to a spike in the supply of hydroelectricity. This pushed down wholesale prices, resulting in a 28.9% contraction in industry revenue. Throughout 2023-24 and 2024-25, wholesale prices once again jumped, driven by a historically low level of hydro-electricity output in 2024-25. Revenue declines were limited by price spikes that offset declines in output. The industry’s future was also secured in 2024-25, when major electricity generators inked a deal with Rio Tinto to continue supplying the Tiwai Point aluminium smelter through to 2044. In 2025-26, the industry’s landscape was radically altered by a merger between Contact Energy and Manawa Energy. The change will aim to increase price competition and efficiency while promoting more consistent pricing and less volatility. In total, revenue is expected to drop at an annualised 4.0% over the five years through 2025-26, to $3.4 billion. This includes a 9.1% decline in 2025-26, as declining wholesale prices are set to reduce revenue and profit margins. The industry needs to secure its output capacity to achieve the Central Government's aim of sourcing 100.0% renewable electricity by 2030. The recent volatility in hydro output will need to be rectified to reach this goal. However, public sector support through the listing of five hydro energy projects in the Fast-track Approvals Bill has secured a promising pipeline for the expansion of hydro capacity in the coming years. The variable nature of the wholesale market will continue to influence industry revenue considerably. Although prices are expected to experience moderate growth, pushing up profit margins, increased competition from other renewable generation industries could potentially exert downward pressure on prices, creating a cloud over the industry’s future. Demand-side factors like steady population growth and the government's clear decarbonisation targets will continue to provide dependable demand for New Zealand's hydro-electricity generators. Over the five years through 2030-31, revenue is forecast to rise at an annualised 2.9% to settle at $4.0 billion.

New Zealand GDP per Unit of Energy Use: 2021 Price: PPP per Kg of Oil Equivalent data was reported at 13.338 Intl $/kg in 2023. This records an increase from the previous number of 13.193 Intl $/kg for 2022. New Zealand GDP per Unit of Energy Use: 2021 Price: PPP per Kg of Oil Equivalent data is updated yearly, averaging 9.933 Intl $/kg from Dec 1990 (Median) to 2023, with 34 observations. The data reached an all-time high of 13.338 Intl $/kg in 2023 and a record low of 7.536 Intl $/kg in 1992. New Zealand GDP per Unit of Energy Use: 2021 Price: PPP per Kg of Oil Equivalent data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s New Zealand – Table NZ.World Bank.WDI: Environmental: Energy Production and Consumption. GDP per unit of energy use is the PPP GDP per kilogram of oil equivalent of energy use. PPP GDP is gross domestic product converted to 2021 constant international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GDP as a U.S. dollar has in the United States.;IEA Energy Statistics Data Browser, https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser;Weighted average;

Graph and download economic data for Consumer Price Index: Housing, Water, Electricity, Gas and Other Fuels (COICOP 04): Total for New Zealand (NZLCP040000IXNBQ) from Q2 2006 to Q3 2023 about water, New Zealand, fuels, electricity, gas, CPI, price index, indexes, and price.