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An electricity consumer advocate claims Transpower is building more infrastructure than New Zealand needs and that is driving power prices up.
Energy users can expect to pay more as power companies look to offset the cost of upgrading the national network.
Some areas in New Zealand will be harder hit than others when grid operator Transpower increases the price it charges to electricity retailers by 20%.
Residential customers in Auckland and Rangioria can expect their power bills to increase by up to 5% in April, while Wellington and Christchurch users can expect a 3% price hike and Nelson 1%.
Consumer watchdogs are calling the increases unjustified and recommend customers question the cost hikes with their power provider.
Electricity consumer advocate Molly Melhuish said Transpower has built more than is necessary.
"Transpower like the state-owned enterprises, like all the power companies, they want to grow, they want to build assets and that is the driver for the price increases."
"The overall price trend is relentless and it is hurting people terribly and increasingly."
Melhuish said the country has just had an election where Government boasted that prices have not risen.
"Soon as they're elected surprise surprise there's a price rise."
She said she thinks there is a link between partial state asset sales and the price increase.
"They want to build more and unless consumers complain bitterly about the price rises they will go on building more power stations than we need and that will fatten the value of the assets and maximise the dollars the Government gets from selling these assets off."
State owned retailer Mighty River Power is expected to be the first to be floated by the Government and has announced a 5.8% increase in power prices which will begin in April.
She said consumer advocates who are saying don't worry just switch your power company are off base as it has nothing to do with switching because the price rises are regional.
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