Mercury Energy Targets Residential Power Price Hikes Below Inflation

Mercury Energy, New Zealand's largest power provider by retail market share, has announced plans to pass through transmission and distribution pricing to residential customers. The state-controlled generator and retailer's chief executive, Stew Hamilton, stated that new residential power prices will be 'at or under CPI' inflation in the year ahead.

Hamilton emphasized that Mercury will consider what new residential pricing should look like as the company heads towards its half-year results for the June 2027 financial year. The company aims to largely pass through transmission and distribution costs, which involve shipping electricity from power stations across the country through the national grid and local lines to homes.

The current CPI inflation rate in New Zealand is 4.1%, with electricity prices rising 12.0% annually in the June quarter. However, Hamilton noted that as wholesale electricity prices come down, Mercury will 'continue to build that into our thinking around what the residential prices will be.'