The Employers and Manufacturers Association is calling the Electricity Authority's proposed pricing changes a tax by stealth.

As it currently stands, the biggest losers will be those north of Taupo with the far north potentially suffering an increase in power prices of 121 percent.

CEO of the EMA Kim Campbell said people running legitimate businesses who have made location decisions based on an agreement at the beginning of power supply should not have to suffer.

"We've now got a third tier regulator basically setting social policy. It's really quite unacceptable."

The proposed changes will mean users will pay actual transmission costs instead of socialised ones, disadvantaging people who live further away from power stations.

Mr Campbell said businesses in particular will face huge financial costs.

"Small business may be up to $7000 increase in cost. An some of the big ones millions, many millions. In our view it's not a very good idea."

Far North mayor John Carter said the impact across the district for individuals is serious, but what's even more concerning is the impact it could have on the region's significant businesses.

"It could mean that we see closures and as a consequence loss of job opportunities and a drop in our economy."

"Tiwai point may be important but so are we," said Mr Carter.

Mr Carter said there are real opportunities for growth in the region and this proposal, if introduced, will not allow that to continue.

"We are working our best to get the economy refocused up here, and we are. We're making good progress and what we don't need is something as devastating as this to hit us."