Rewiring prices to rocket

By STUART DYE

Homeowners will face a hike of up to $500 for a typical rewiring job as the price of copper reaches a 16-year high.

From April 1 the price of copper will go up by around 25 per cent, says the Electrical Contractors Association.

About half the cost of electrical cables for buildings is copper and new home builders and developers are being warned to watch out for the rise.

"The situation is volatile and extraordinary in both the magnitude of the increases and how frequently they have occurred," said association chief executive Ray Barbara.

The cost of an average rewiring job was difficult to quantify, he said.

"But if it's around $6000, then around $2000 of that is copper costs. It will mean an extra 25 per cent on that."

The situation meant that it was impossible for electrical contractors to base their costs on fixed prices, he said.

The rise is being blamed on strong demand from China, stronger European and Asian economies, and supply disruptions caused by Indonesian mudslides and strikes in Peru.

The NZ dollar has appreciated by more than 20 per cent in the past six months but the cost of copper has surged by more than three times that.