Power. At what cost?

The consumer case for electricity reform.

Our report identifies four key drivers that are keeping prices high and recommends changes to deliver affordable, reliable electricity for everyone.

Key findings

Power prices have outpaced inflation – Since the Bradford reforms in 1999, household electricity costs have risen by around 177%, at nearly twice the rate of inflation.
Households are cutting back to cope – Our research found 41% of people were going without heating to save money, while 21% went to bed early to reduce energy use.
Energy is a top financial concern – More than half of New Zealanders are worried about rising power bills, making energy the second biggest financial concern after food.
Disconnections are leaving households without power – More than 30,000 households had their power cut at least once during the last financial year because they couldn’t pay their bills.
Prepay customers are hit hardest – In 2025, there were 317,031 prepay disconnections, with some households disconnected up to 11 times in a single month.

Four big power companies dominate the electricity market – Contact, Genesis, Mercury and Meridian control around 85% of the retail market. These companies both generate and retail electricity, giving them competitive advantages smaller retailers don’t have.
Power prices don’t reflect real costs – The spot market means expensive fossil-fuel generation can set the price paid for cheaper renewable electricity.
New Zealand hasn’t invested enough in homegrown energy – Over the past 25 years, the country's generation capacity has increased by just 15%, leaving us too reliant on expensive coal and gas when renewable supply is low.
Party politics have got in the way of a long-term plan – New Zealand lacks a durable, cross-party energy strategy to guide investment, improve affordability and support the transition to renewable power.

End the dominance of the big four power companies – Separate power generation from retail, so smaller power companies can compete, which should lead to lower prices and more choice for consumers.
Make power prices reflect real costs – Sort out the market so we stop paying high fossil fuel prices for cheaper renewable energy.  
Invest in more homegrown energy – Build more renewable generation and dry-year backup capacity, so New Zealand relies less on expensive coal and gas.
Use government buying power to unlock investment – Leverage long-term deals with large public energy users, such as hospitals, to help new generation projects get off the ground.
Investigate a firming market – Explore whether New Zealand needs a separate market for dry-year backup power, as recommended by the OECD, to encourage more independent generation.
Make household solar part of the system – Support more homes to install solar and explore how household-generated power can be shared locally and fed into the grid.
Set a long-term national energy plan – Develop a cross-party strategy with clear 10-, 20- and 30-year targets for energy affordability, security and emissions.