The country's second-largest electricity gentailer says rising electricity prices are the result of rising lines charges.

Inflation's now back up at three-percent.

The single biggest driver is electricity prices - which have increased 11.3 percent in the past year.

Contact Energy Chief Executive Mike Fuge says electricity firms are having to pass on the fixed lines charges that cover the cost of infrastructure.

He says they rose by about 20-percent last year and about 16-percent this year.

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