Contact Energy will raise its prices in Dunedin by almost 10% next month, prompting the Energy Minister to encourage consumers to shop around.
Contact says the rise is because of increases in the cost of generating electricity and providing retail services, as well as the introduction of the Government's Emissions Trading Scheme.
The state-owned company says while individual increases will vary, the average increase for Dunedin customers will be 6%.
However, this does not include the Emissions Trading Scheme increase.
Contact says an average residential customer using 8000 kilowatt hours of electricity per annum faces an increase of $62.37.
Analysis by the Ministry of Economic Development indicates Contact's prices in Dunedin are already 13% higher than those of its competitors.
That has prompted Energy Minister Gerry Brownlee to encourage consumers to shop around.
He says Dunedin consumers can make substantial savings by changing power companies.