Contact Energy gas price hike: Tens of thousands of customers will see average 17% jump
Tens of thousands of households will see their gas prices hiked by an average of 17% as Contact Energy says the decline in production has hit faster and harder than expected.
“We work hard to ensure our customers are on a competitive gas rate,” Contact’s chief retail officer Carolyn Luey said.
“We are balancing the need for energy security with a constrained gas supply as the country transitions to a renewable energy future.”
Contact has “committed more than $2 billion on building the critical energy infrastructure New Zealand needs”, Luey said.
“In the past financial year, our entire net profit – and some – was invested in developing renewable energy projects.
“The more power stations we build, the faster prices will come down over time. And this will help ensure New Zealand has a secure, sustainable renewable energy supply for households and businesses.”
A letter to one affected customer in Wellington said their prices would rise more than 20% on December 1, the Post reported.
One of Contact’s energy plans will see prices increased to 14.9 cents per kilowatt hour, excluding GST or prompt-payment discounts, the Post said.
It would see each gigajoule (GJ) of gas priced around $41.40, excluding GST, the Post said.
The latest spot price for gas today was $13.12, Transpower-owned EMS Tradepoint showed. The average price for the quarter was listed today as $15.98.
Statistics NZ last week revealed September price figures.
Gas was 17% more expensive than a year ago and 1.4% more expensive than the month before, the data showed.
The Post reported the country’s largest gas user, methanol producer Methanex, was believed to pay $6/GJ. Other businesses are paying $25 or more per GJ, a BusinessNZ survey from August found.
Contact Energy chief executive Mike Fuge told the Herald in August: “No one foresaw the collapse on the upstream gas market, and how rapid it was going to be.
“The answer is to get off base load gas [for continuous power generation], as we’ve done, and to build more renewables as we’re doing.
“And the answer is to actually keep going.”
Contact earlier reported a net profit of $331 million and earnings before interest, tax, depreciation, amortisation and financial instruments (ebitdaf) of $872m for the 2025 financial year.
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Poll: Should we be giving the green light to new mining projects? 💰🌲
The Environmental Protection Authority announced this week that a proposed mine in Central Otago (near Cromwell) is about to enter its fast-track assessment process. A final decision could come within six months, and if it’s approved, construction might start as early as mid-2026.
We want to know: Should mining projects like this move ahead?
Keen to dig deeper? Mike White has the scoop.
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53.2% Yes
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46.8% No
Aucklanders, we want to know: How are you feeling about the current property market?
New Zealand homeowners are now more likely to sell at a loss than at any time since 2013, and if you’re in Auckland or Wellington, the odds are even higher.
But there is a silver lining: buyers are still in a strong position when it comes to negotiating prices.
So we’re curious…
How are you feeling about the current property market?
If you’re keen to dive into the details, Deborah Morris breaks down all the latest insights.
‘Tis the season to not get scammed ...
As Christmas gift shopping moves increasingly online, scammers are ramping up their activity across the country.
Dunedin’s Investigation Support Unit is seeing more and more people fall victim to scams and other fraudulent activity, particularly on Facebook Marketplace.
There are a few ways to avoid the scams and keep yourself safe doing online trades this holiday season, says Southern District Service Delivery Manager Senior Sergeant Dalton.
🔒 “A good first step when looking to purchase something on Marketplace is to check when the seller’s Facebook profile was created. If it’s very recent, there is a higher risk that they have just created this account for a one-off fake item.”
🔒 Another important step is to make sure the seller’s profile name and bank account name match up. “We’re seeing a lot of scammers claiming their bank account name is different because it belongs to their partner or family member - that’s a huge red flag."
🔒 “When you’re selling, never trust a screenshot anyone sends you showing that payment has been made. Check your own bank account to make sure a payment has gone through."
🔒 “Quite frankly, it’s best for all parties to agree to pay, or be paid, for items in cash and in-person. Ideally in a public place with CCTV coverage."
🔒 "If you’re buying a car, check Carjam.co.nz to see if it’s stolen or if there’s money owed on it.”
A reminder: Suspicious activity can be reported on 105
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