Coasties, the Energy Competition Task Force has announced an ambitious programme aimed at enhancing New Zealand’s electricity market.

The Task Force, which includes experts from the Commerce Commission Te Komihana Tauhokohoko and the Electricity Authority Te Mana Hiko, along with observers from the Ministry of Business, Innovation and Employment, is set to tackle several key issues with a two-pronged approach.

The Task Force's work programme focuses on two main areas: facilitating entry for new generators and independent retailers, and expanding options for consumers.

These actions are designed to drive competition, encourage investment, and offer better ways for locals to manage their electricity usage and costs.

New Generators and Retailers

Dr John Small, Chair of the Commerce Commission, highlighted the urgency of this initiative, particularly following last month’s fuel shortage.

The first package of measures aims to streamline the entry process for new market participants and accelerate the development of new generation capacities.

This includes exploring improvements in wholesale contracting arrangements to support investments in solar and wind power.

“The aim is to strengthen the security of supply and promote competition,” Dr Small said.

“We are evaluating various options to bring new competitors into the market and to ensure that we make the most of emerging technologies.”

Empowering Consumers

Anna Kominik, Chair of the Electricity Authority, outlined the second package’s focus on providing consumers with more control over their electricity usage.

This involves regulatory changes that could encourage the adoption of time-of-use pricing, rooftop solar, and batteries.

The Task Force is considering incentives for consumers who export surplus power or reduce their usage during peak times, which could help manage network congestion and lower system costs.

“We are committed to empowering consumers and driving greater uptake of technologies that can benefit everyone in the long run,” Kominik said.

“Our goal is to ensure that consumers are rewarded appropriately and that we create a more responsive and efficient energy system.”

Both packages are being developed with input from stakeholders and will undergo a public consultation process before any final decisions are made.

The Task Force expects to present detailed advice to the boards of the Commission and Authority in the coming months.