The Authority’s ‘Enabling Mass Participation’ consultation asked what needs to be done to make sure consumers benefit from innovation and new technology, including giving them more choice and control.

The 39 submissions received broadly supported the Authority’s current and planned work in this area, but also unveiled a lack of confidence that access to electricity networks was equal and unbiased.

Electricity Authority Chief Executive Carl Hansen says any roadblocks to a level playing field for network access would limit innovation and reduce potential gains for consumers.

“We want to ensure people can bring innovation and new ways of doing business without coming across any unnecessary barriers stopping them from entering the market.

“For example, some parties are exploring the potential of evolving technologies such as batteries. Using these technologies often requires access to a distribution network—this access needs to be equal and non-discriminatory,” Mr Hansen says.

“Consumers are the ultimate beneficiaries of innovation. We want to make sure existing arrangements aren’t standing in the way of more competitive, reliable and efficient outcomes.”

The Authority’s newly established Innovation and Participation Advisory Group (IPAG) will be asked to closely look at whether unnecessary hurdles exist around network access, and how to address any potential barriers or factors undermining confidence in non-discriminatory access to electricity networks.

The Authority is exploring a range of other initiatives to ensure barriers aren’t standing in the way of consumers benefiting from innovation and change. It includes how data is shared and exchanged, whether there’s potential for consumers to enter trading relationships with multiple parties and a review of distribution and transmission pricing.

For more information:

Shanna Crispin
Senior Communications Adviser
021 073 7777

Background information

The Electricity Authority is an independent Crown Entity with a statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers.

A key part of its focus is ensuring innovation is happening within the industry. The Authority’s work addresses key questions that affect the long-term benefit of consumers including: are prices reasonable? Will the lights stay on? Do consumers have choices? Is innovation occurring?

New technologies and businesses are emerging and some of these may need access to what we call transmission and distribution networks. Currently these networks are operated by monopoly companies.

Transmission and distribution networks are key components of New Zealand’s electricity system. Once electricity is generated at power stations, it is fed into the transmission network, also referred to as the national grid. Electricity then travels via local distribution networks (poles and wires) to get to peoples’ homes and businesses.

From each dollar of peoples’ power bills, about 30 cents covers the cost of generation, while almost 40 cents covers transmission and distribution. The remaining 30 cents covers retail companies’ operating costs, metering, GST and the costs of running New Zealand’s electricity markets.

Both the transmission and distribution networks are natural monopoly markets and, as such, the amount most of these companies can charge is regulated by the Commerce Commission. The Electricity Authority’s role is responsible for the actual pricing structure.