Power price rises continue to outstrip inflation due to large increases in monopoly transmission and lines charges, the Electricity Authority says.
The authority's annual report shows the lines component of household power bills increased by 6.7% in the three months to June while retail charges fell by 0.7%.
Although monopoly charges were regulated by the Commerce Commission, line companies around New Zealand reported before-tax profits of more than $800 million for the year ending March, according to their financial disclosures.
Ari Sargent, the chief executive of electricity retailer Powershop, said there still was not enough transparency or accountability for prices in the power industry.
''Costs are continuing to rise for everyone but all customers see are their power bills getting bigger year after year. They're absolutely right to question whether lines company profits of $800 million are excessive.''
More innovation was urgently needed in the industry to insulate customers from higher power costs.
It was good to see retailers working harder to lower prices. But it was also up to lines companies, generators and everyone else in the industry to produce more for less rather than just passing costs directly to customers, Mr Sargent said.
Lines charges
Southern profits for year ended March
Orion: $62.7 million
Electricity Ashburton: $19.5 million
Network Waitaki: $2.95 million
Aurora Energy: $26.6 million
Otagonet: $12.9 million
The Power Company: $17.5 million
Electricity Invercargill: $6.2 million
New Zealand total: $800.55 million
