KEY POINTS:
Residents in some parts of Auckland will pay up to 5 per cent more for power after increases in Vector line charges and Mercury Energy electricity prices.
The rises of between $2.80 a month and $6.30 a month came as Energy Minister Gerry Brownlee stressed the need for affordable power in difficult economic times.
Lines charges are going up 5.3 per cent for Vector's entire network, and Mercury Energy is putting up prices in north and west Auckland by 3.9 per cent.
Combined with Vector's increase, 64,000 Mercury northern consumers in the area stretching to Wellsford will face an increase of 4.9 per cent from April 1.
Mercury put up its prices for other parts of Auckland by up to 4 per cent from last October.
General manager James Munro said northern customers had not had an energy charge increase for 18 months, and were now being brought into line with those south of the Auckland Harbour Bridge.
Vector chief executive Simon Mackenzie said his company was investing more than $200 million a year in its network to meet demands for a greater security of supply but were faced by increased costs as many materials were bought in US dollars.
Distribution charges from lines companies such as Vector can make up 40 per cent of power bills but about a quarter of that is Transpower, Electricity Commission and local body charges.
Mr Brownlee said companies like Vector were making infrastructure investments which put stress on their prices but were kept in check by the Commerce Commission.
However, in the case of the state-owned enterprise generators - Mercury's parent company, Mighty River Power, Meridian and Genesis - there had "been almost a denial of the fact that we're living in very difficult economic times".
A commission report into alleged breaches of market power is due for release soon.
GOING UP
From April 1
* Mercury customers in north and west Auckland - $6.30 a month
* Vector customers in other areas - $2.80 a month.
