Price increase frequently asked questions
What’s happening?
Alpine Energy updates its delivery prices (also known as lines charges) once a year. Our new prices will take effect from 1 April 2025.
Who is Alpine Energy?
We distribute electricity across South Canterbury, ensuring homes and businesses receive a safe, reliable, and resilient power supply. Our network includes power lines, poles, and other infrastructure, which we maintain and upgrade to meet current and future energy needs. We are one of 29 electricity distribution businesses (EDB) in NZ.
What are delivery prices (or lines charges)?
Lines charges cover the cost of building, maintaining, and operating both the local electricity network and the national high-voltage grid.
Alpine’s charges make up about 27% of the average power bill, while Transpower’s transmission charges account for 11%, bringing the total network-related portion to 38% of your bill. The rest includes electricity generation, retailer & other costs, metering fees, and GST.
Why are prices changing?
We are investing in a resilient, low-carbon future by upgrading infrastructure to:
- Meet growing electricity demand as South Canterbury homes and businesses shift away from fossil fuels.
- Increase resilience by strengthening aging parts of the network to withstand extreme weather.
- Enhance reliability by addressing vulnerabilities that can lead to outages.
- Improve digital systems and cybersecurity to protect our network and customers.
We recognise that these investments come at a cost, but they are designed to bring long-term benefits to the community.
What does a low-carbon future mean?
New Zealand is transitioning to a low-carbon future, which means we’ll burn less fossil fuels such as gas, petrol and coal, and use more electricity, which is more efficient, made in New Zealand, and has a low carbon footprint. Increasing use of electricity requires significant investment in our electricity network. In South Canterbury, this includes upgrading aging infrastructure to withstand extreme weather events, accommodating new technologies like electric vehicles, and supporting the growth of renewable energy sources.
Why are interest rates affecting network prices?
Higher inflation and increased interest rates are having an impact on running lines companies by pushing up the cost of materials, labour, finance, and operations. These costs were factored in and reviewed by the Commerce Commission, which regulates how much Alpine and other lines companies can earn.
When the Commission last set revenue allowances for EDBs in 2019, inflation and interest rates were low. By contrast, EDBs have experienced inflationary cost pressures over recent years. The Commission estimated that inflation increased Alpine’s costs by $36.7 million in 2025-30, compared to the previous five-year period.
Are there other reasons for the change in pricing?
Yes, growing demand and transmission charges. Electricity demand will increase in coming decades as South Canterbury homes and businesses turn to electricity as their main energy source, and our industry and population expand.
And Transpower has increased its charges for building and maintaining the high-voltage grid supplying power to South Canterbury. Regulations require us to pass these costs on to our customers.
How big are the increases?
Lines charges are increasing by 19% for households, or around $16 per month on average. On a $250/month power account this is about a 6% increase.
Line charges are set by us and charged to your retailer who you pay your power account to. Your account may look different depending on how much electricity you use and how your retailer packages our charges in their pricing.
Alpine reduced distribution prices in June 2024 — how do the April 2025 prices compare?
The $16 per month price impact from our April 2025 pricing change is referenced against our prices from April 2024, not the temporary reduction introduced in June 2024. In June 2024, we made a one-off price reduction. This was equivalent to around $6 per month for households and applied from June 2024 to March 2025. This was a point-in-time adjustment to correct a historical pricing error that set prices in 2024. By referencing the April 2024 baseline, we provide a consistent comparison of annual price changes.
How does Alpine Energy compare to other EDBs in NZ?
In the first year of the 2025-2030 regulatory period, Alpine’s price adjustment is one of the highest across New Zealand. This reflects the unique challenges in South Canterbury: we have an aging network that needs upgrading, large-scale industries switching to electricity, and a diverse mix of commercial customers — from farms and food processors to tourism and the port. The April 2025 increase means we can get a head start on this important work. But in the following four years of the regulatory period, Alpine’s increase is at the lower end of the range of increases, which is more helpful for our customers in managing their power bills.
Will prices keep rising like this for the next four years?
From 2026 to 2030, price increases are expected to be smaller. The Commerce Commission estimates that household electricity bills will rise by about $5 per month ($60 annually) each year across New Zealand. Regional increases may vary from $5 to $15 per month, with Alpine Energy’s estimated increase at $5 per month.
Alpine Energy operates under the Default Price-Quality Path (DPP) set by the Commerce Commission. This means there is a specific formula that determines how much we can charge over a set five-year period.
Here’s how it works in simple terms:
- Five-Year Price Path: The Commerce Commission sets price limits for five years at a time. We’re now in year one of a new price path that runs from 2025 to 2030.
- Limited Annual Adjustments: Each year, prices can change slightly but only based on a set formula that considers inflation and other factors.
- No Large Unexpected Increases: Unless there’s a special approval (which is rare), prices generally follow the planned path, meaning we can’t suddenly increase charges beyond the allowed limits.
While we expect some increases in the coming years due to inflation and rising costs, they are unlikely to be as large as this year’s adjustment. The Commerce Commission's framework is designed to keep prices predictable and fair while allowing essential investment in the electricity network.
What exactly am I paying for?
The electricity distribution network is made up of many complex parts, designed to work together to deliver safe and reliable electricity to homes, businesses, and the community. Your delivery prices help us to:
- Operate, maintain, and build the power lines and infrastructure that serve 33,900 homes and businesses.
- Clear trees and inspect assets to prevent unplanned outages.
- Respond to faults quickly and strengthen the network to reduce disruptions.
- Plan for future demand by supporting new connections and evolving energy technologies.
- Pay our share of Transpower’s national grid operation costs.
We’re aware that customers will be paying for this investment, but our end goal is to provide long-term benefits for our customers and communities
How can I manage my power costs?
We understand price increases can be challenging. Here are some helpful tips to help you manage:
Financial support: contact your retailer for flexible payment options and support
Best power plan: compare plans with Powerswitch for the best deal
Save power: get easy tips to save big from Consumer NZ
Low-user plan phase-out assistance: check if you’re eligible for a one-off $110 payment by talking to your electricity retailer.
Budgeting help: call MoneyTalks at 0800 345 123 or visit moneytalks.co.nz
Is the price increase related to the past pricing error?
You might recall that Alpine Energy unintentionally overcharged for lines services due to a complex accounting error discovered in 2023. The April 1 price adjustments are completely unrelated to this error, which has now been corrected.
What is the latest on overcharging? Will customers get their money back?
We are currently working with the Commerce Commission on redressing the historical error which resulted in customers being overcharged. This overcharging stopped in May 2024, and Alpine and the Commission have since been working on an agreed remediation. Alpine is committed to keeping its customers informed and we will say more when we have finalised an agreement with the Commission.
Are you putting up prices because of the historical accounting error?
The April 1 price adjustments are completely unrelated to this error, which has been fixed.
Will businesses see the same percentage increase as households?
The price increase for businesses is generally based on the same principles as for households, but the actual cost will depend on their electricity usage and network connection. Larger businesses or those with more complex needs may experience different impacts. We encourage businesses to get in touch with their retailer to discuss their specific situation.
What steps is Alpine Energy taking to keep costs down?
We are continually working to optimise our operations and improve efficiency to minimise costs for customers. This includes investing in technology, enhancing infrastructure, and planning for a sustainable future. We’re committed to balancing cost efficiency with the need to maintain a reliable and resilient network.
Can Alpine Energy delay or spread out these increases?
The pricing increase is based on revenues set by regulatory authorities and is necessary to meet the growing costs of maintaining and upgrading our electricity network.
What happens if inflation drops further—will prices go back down?
Prices are influenced by several factors, including inflation, operational costs, and regulatory decisions. While we monitor economic conditions, any changes in pricing are determined by regulatory authorities in their five-yearly reset of our revenues and service quality. The next five-yearly review is in 2029. Meanwhile we remain committed to providing value for money and will always communicate any changes clearly.
Are there any government subsidies or discounts available to help with electricity costs?
Some households may be eligible for the Winter Energy Payment, and there is financial support to help some low users of electricity. We recommend speaking with Work and Income or checking with your electricity retailer to check your eligibility.
How do I know if my retailer is passing on the price increase correctly?
Electricity retailers’ package and structure pricing in different ways. If you have concerns about how your power bill has changed, we recommend contacting your retailer directly to understand how they have adjusted their pricing.
Does Alpine Energy make a profit from these price increases?
Alpine Energy is regulated by the Commerce Commission, which determines how much revenue we can earn - and also sets an acceptable level of profit.
Why can’t the businesses that are driving up demand pay for the cost of the upgrades they need? Why do I have to pay for them?
Alpine Energy follows regulations from the Commerce Commission and the Electricity Authority. This includes setting fair and efficient prices based on the Authority’s 2019 distribution pricing principles. These principles ensure prices are subsidy-free, reflect network use and service differences, and promote efficient network alternatives. Following the principles means businesses in South Canterbury will be paying a fair share of the cost of future network investment. But homeowners will also be contributing to ensure our growing network continues to be reliable, resilient and fit-for-purpose as both homes and businesses use more electricity for their energy needs.
How do I know what tariff I am on?
We’d be happy to tell you what distributor tariff code you’re on. Email us on mailbox@alpineenergy.co.nz with the subject line “Pricing” and we’ll come back to you. Or you can phone us on 0800 66 11 77. Another way to find out is to type your physical address into Your meter | Electricity Authority and scroll to the ‘Network Pricing/distributor price category code’ field. A third option is to ring your retailer. Remember to ask them for your distributor tariff code, as retailers issue their own tariff codes.