Electricity prices in Canterbury are set to rise with confirmation from lines company Orion it will increase prices by 3 percent from April this year.
It is a double-whammy for consumers, who will also be faced with a price rise from national grid owner Transpower.
The Commerce Commission has allowed the increase following an appeal from the company to
try to recoup costs of repairing infrastructure damaged by the Canterbury earthquakes.
Orion says if electricity retailers pass on its increase to customers, as well as the increase from Transpower, the average household electricity bill will rise by about 4 percent.
Together, Orion and Transpower charges represent about 40 percent of an average household power bill.
Orion chief executive Rob Jamieson said it would cost hundreds of millions of dollars to rebuild its network.