Lines company Aurora Energy is increasing its line charges by 7.3% next month.
The Dunedin-based company cited increased transmission charges as the main reason for the price hike, which takes effect on April 1.
If retailers passed on the increase to consumers, an average household would pay an extra $3.88 a month.
''The actual increase is at the discretion of the electricity retailer and will vary according to the type of connection, annual consumption and location on the Aurora Energy network,'' a media statement said.
Chief executive Grady Cameron said the distribution price component of Aurora line charges would increase on average by 1%.
Aurora services about 84,000 connections in Dunedin and Central Otago.
''The ongoing investment provides the essential infrastructure underpinning the social and economic wellbeing of our community. Aurora Energy is committed to making the necessary investment to ensure secure, reliable electricity supplies for consumers today and the future.
''In the past three years, we have made significant upgrades to supply at Queenstown, Frankton, the Remarkables, Cardrona and Dunedin. Last year alone, we invested $18.5 million in the network, and a further $20 million to $25 million annual investment is planned on average each year for the next 10 years,'' he said.
