Electricity Price Review

In April 2018, the Minister of Energy and Resources commissioned an independent review of New Zealand’s electricity market.

The final report was delivered to the Minister of Energy and Resources in May 2019. It contains 32 recommendations related to consumers, industry, and regulation and technology. The Government announced its response to the Review in October 2019 and the Authority welcomes the Government’s response.

The review took into account crossovers and linkages with existing and planned work, including:

• the Electricity Authority's work on transmission pricing
• the new Interim Climate Change Committee’s work on how to reach 100% renewable electricity by 2035
• the Productivity Commission's low emissions economy inquiry.

The Authority is taking deliberate and planned action on the Electricity Price Review’s recommendations.

The dashboard of the Electricity Price Review:

• Reducing energy hardship:

1. Establish a cross-sector energy hardship group
2. Define energy hardship
3. Build network of community level support services
4. Prohibit prompt payment discounts

• Strengthening the consumer voice:

1. Establish the consumer advocacy council

• Improving the regulatory system

1. Amend the Electricity Industry Act 
2. Phase out low fixed-charge tariff regulations
3. Update the Electricity Authority’s compliance framework

• Preparing for a low-carbon future

1. Explore new institutional arrangements for energy policy and regulation

• Improving transmission and distribution

1. Issue a GPS on transmission and distribution pricing
2. New powers for the Commerce Commission to regulate distributors.