Electricity generator Meridian Energy has become the latest power company to announce price increases, and one of its business rivals says it will not be the last.
Prices for 14,000 Meridian customers from Invercargill to North Otago will rise by up to 7% from March 15, spokeswoman Claire Shaw said yesterday. However, the rises will not be the same throughout the region.
Invercargill customers will have the lowest increase, 4.92%, with 5.8% for Southland customers and 7% for those living in Dunedin, Central Otago and Waitaki.
The increases varied because of factors such as the amount different network companies charged Meridian to carry their electricity supply, and electricity losses along different transmission lines, Ms Shaw said.
The price hikes would be the second in a year for some Meridian customers, she said.
The company tried to keep price increases to one a year, but it was facing "severe costs pressures" and the need to build up funds for new generation projects.
Meridian is planning $3 billion worth of new projects, including the Waitaki River north bank hydro generation schemes and the Project Hayes wind farm in Central Otago.
Increasing power prices now would shield customers from large increases if and when planned schemes came about: "Small increases provide a smoother path for consumers."
Meridian was not alone in price pressures and building up funds for new projects, she said.
Contact Energy attracted much criticism for an 11% price rise in October, and Genesis Energy increased its charges by between 3% and 17% in December.
TrustPower, which picked up about 7000 new customers in Dunedin as consumers fled Contact, would also be putting up its prices again this year, community relations manager Graeme Purches said yesterday.
Price rises were "inevitable" as power companies struggled with increasing wholesale energy prices and the need to fund new projects, he said.
Consumers were also being hit by additional charges to pay for an "aggressive" upgrade of the country's electricity transmission lines.
However, Mr Purches said he "confidently expected" TrustPower's price increases to be about 5%-7%, not counting any increases added by lines companies.
