Genesis Energy's latest power price rise has been labelled 'unwarranted” by one Bay of Plenty resident.

The Genesis Energy customer, who would only be named as a 70-year-old Tauranga pensioner, says the latest price rise is just greedy.

Nationally power prices increased by $121.

Last month, Genesis Energy customers were informed of a 10 per cent increase for residential fixed charges as well as a 7.5 per cent variable fixed charges increase following the company's last rise in April 2012.

The increases for households on the Classic Plan using up to 500 kWh per month will pay $10 more a month.

In a letter from the company Genesis stated prices are being adjusted to reflect the changing cost of third party distribution charges and the business.

Figures from the Business, Innovation and Employment Ministry survey show average national household power costs increased $121 to February.

The survey compares electricity prices available to new customers on February 15, to rates offered on the corresponding day last year.

In Tauranga alone, 7000 residential and 500 commercial Genesis Energy customers experienced a price rise last month.

The Bay pensioner has written to SunLive outlining her frustrations, and believes the rise is not justified.

'I told them it was all gobbledygook and doesn't stand up.

'I just felt it is unwarranted in New Zealand when the rain falls out of the sky. I mean most of Genesis Energy is water power anyway.”

The woman lives alone on a lifestyle block where she uses solar power, a Marshall heater, and oven -sparingly and says she still receives a power bill for between $130 and $140 a month.

She questions whether the company realises the minimum wage has not increased and there are people still earning below the wage who, along with pensioners, find themselves in a very difficult situation.

'As pensioners we only get $350 a week [which is $8.71 an hour for 40hrs].”

Genesis Energy spokesperson Richard Gordon says the price increases is largely driven by TransPower, the owner of the national grid, which is building new lines on the grid including a high voltage line from Whakamaru to Otahu and a billion dollar upgrade across the Cook Strait.

'There has been a lot of investment from TransPower and a lot of that investment is following on to the customers.

'The main reason [for price increases] is the increase in investments to run the national grid. We have absorbed this cost as much as we can and now have to pass on some to the customers.”

Richard understands people are frustrated, but says as with any other company they have to be competitive in the market and they are 'not putting them up for the sake of it”.