From 1 April 2026, as we enter the second year of the Commerce Commission’s default price-quality path (DPP4) reset, Orion and other electricity network companies will be increasing their prices.
Electricity network revenues are not set by individual companies, but by the independent Commerce Commission through a regulated process.
The default price-quality path reset decision was announced by the Commerce Commission on 20 November 2024. The DPP4 sets limits on how much electricity networks can charge and outlines the quality standards they must meet.
This framework is designed to balance the need for ongoing investment in safe and reliable infrastructure with protections for consumers, by limiting how much revenue networks can recover and how prices can change over time.
"We recognise that ongoing cost increases are challenging, especially as households and businesses continue to manage the impacts of inflation and higher living costs. However, at the same time we need to be making ongoing investment in our network to ensure we maintain the reliability and service our customers expect," says The Orion Group Chief Executive Nigel Barbour.
"If we delay investment, it will result in even higher costs in the future and could undermine the reliability of electricity supply, especially as demand continues to rise," says Nigel.
For 2026, the average household on the Orion network will see electricity bills increase by approximately $10 per month ($120 annually) to cover higher distribution and transmission costs for the coming year.
"Electricity is a vital part of everyday life, and we're committed to balancing reliability with affordability to keep powering our community as it continues to grow and thrive," says Nigel.
Orion is also progressing with its Customised Price-quality Path (CPP) application, seeking Commerce Commission approval to increase regulated revenue and allow for targeted investment in the network. If the CPP is approved, Orion will be able to make strategic investments to further enhance reliability and support increased demand in the years ahead.
For customers, this may mean an additional initial increase in prices, but over the long term, the benefits include reliable and resilient electricity supply and a network better equipped for future growth. To find out more, visit our have your say site.