Households and businesses are set to face higher electricity bills. 

The Commerce Commission estimates the average household's monthly electricity bill will rise by around $10 from April. 

The Commission's allowing Transpower and local lines companies to raise prices as they aim to upgrade and maintain the grid. 

Major Electricity Users' Group Chair John Harbord told Ryan Bridge the impact will be more significant on industrial manufacturers. 

He says those large businesses don't buy their electricity from retailers, so the percentage of their bill that comes from transmission is higher. 

Harbord says many of those businesses are already struggling with costs. 

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