The Electricity Price Review (EPR)
The Authority continues to complete EPR-related recommendations. We have prioritised the most impactful recommendations.
In April 2018, the Minister of Energy and Resources commissioned an independent review into 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 Authority is taking deliberate and planned action on the Electricity Price Review’s recommendations.
The Authority and the EPR recommendations
Ensuring the electricity market benefits all consumers is a priority for the Authority. The Authority has made substantial progress to date on EPR-related recommendations, prioritising the most impactful key recommendations related to wholesale, distribution and retail markets. We also continue to support MBIE as it progresses with its areas of responsibility. The tables below set out our progress.
Any questions about the Authority and EPR, please email info@ea.govt.nz.
Progress update – February 2022
Increase retail competition
| Recommendation | Status | Comment |
| C1: Merge EA and Consumer NZ price comparison websites | COMPLETE | The two websites were merged in December 2019. |
| C2: Improve consumer awareness of Powerswitch and Utilities Disputes | COMPLETE | A Code amendment requiring all retailers to display clear and prominent information about Utilities Disputes and Powerswitch came into effect on 1 April 2021. The Authority released guidelines to support retailers to implement the changes. |
| C3: ACCESS quick wins | COMPLETE | On 1 March 2020, the Authority amended the Code to implement a series of initiatives making it easier for consumers to share their electricity consumption data with businesses and organisations they trust. |
| C3A: Streamlining access to electricity consumption data | First phase complete, second phase due for completion late 2022 | The Authority has already delivered part of this recommendation by completing the Additional Consumer Choice of Electricity Services (ACCES) project. Given current work on improving access to data by distributors and third parties as part of its distribution strategy focus, the Authority will consider further improvements to consumer access to consumption data, in alignment with the updating the regulatory settings for distribution networks work programme. Staff are undertaking engagements with stakeholders with the goal of gathering evidence to determine the existence and scale of issues, which will inform a consultation paper that is planned for mid-2022. |
| C4: Make distributors offer retailers standard terms for network services | COMPLETE | The Authority amended the Code on 20 July 2020 to require all distributors to develop and publish a Default Distributor Agreement (DDA), with the first agreements being in place December 2020. The amendment provides a more level-playing field for traders entering and trading on a distributor’s network, which may lead to more choice of electricity services for consumers. |
| C5: Prohibit saves and win-backs | COMPLETE | The Authority amended the Code to prohibit saves and win-backs for 180 days after a consumer switches. The amendment supports consumer choice and promotes retail competition, which is intended to place downward pressure on retail electricity prices. |
| C6: Establish a pilot scheme to help non-switching consumers find better deals | COMPLETE | In August 2021 the Authority undertook a pilot to see if letters, sent via the post-could prompt consumers to consider whether they were on the best deal for their circumstances. We focused on consumers in areas with lower-than-average switching rates. The key finding was letters are an effective means of communicating with consumers and the pilot increased consumer engagement in the electricity market, measured by visits to Powerswitch. You can read the evaluation report here. |
Reinforcing wholesale market competition
| Recommendation | Status | Comment |
| D1: Improve availability of wholesale market information | COMPLETE | The Authority decided on a suite of reforms to improve the availability of thermal fuel information in December 2020. |
| D2: Enduring market making arrangements | COMPLETE | The Authority decided on an enduring approach to market making arrangements in August 2020. Implementation will take 18+ months. As a first step, a Code amendment to include a permanent mandatory backstop was implemented in April 2021. |
| D3: Make generator-retailers release information about the profitability of their retailing activities | COMPLETE | The Authority decided in August 2021 to implement the proposals which will enhance reporting of internal transfer pricing, and retail profitability, for generator-retailers. The Code amendment was implemented in November 2021. |
| D4: Monitoring contract prices and new generation costs more closely | On track for completion 2022 | An analysis of contract prices compared to new generation costs is currently underway. The result of this analysis is planned for release in mid 2022. |
Improving Transmission and Distribution
| Recommendation | Status | Comment |
| E6: Ensure access to smart meter data on reasonable terms | COMPLETE | Delivered with EPR C4, the Authority amended the Code to introduce the Data Template. The Data Template provides distributors with access to smart meter consumption data on reasonable terms to develop more efficient distribution prices and plan and manage their network. The Data Template provides protections to ensure data is not misused. |
Low carbon future
| Recommendation | Status | Comment |
| G2: Examine the security and resilience of electricity supply | On track for completion mid 2022 | The Authority has reviewed the scope and timing of this review to align with the NZ Battery Project led by MBIE. The Authority has decided to amend the Code to enable some battery energy storage systems (ESS) owners to offer injectable instantaneous reserve. Work on complementary amendments to the system operator’s ancillary services procurement plan is underway. The Code and procurement plan amendments are expected to come into force around 1 April 2022. Other aspects of the review are due to be completed in mid 2022. |
Electricity Authority supported EPR responses
| Theme | Recommendation | Status | Comment |
| Strengthen Consumer Voice | A2: Update the Consultation Charter | On track for completion mid 2022 | The project is underway. |
| Reducing Energy Hardship | B6: Set mandatory minimum standards to protect vulnerable and medically dependant consumers | COMPLETE | The Authority has published new consumer care guidelines which came into effect on 1 July 2021. The Authority is currently working through the implementation process with stakeholders, and developing supporting consumer and participant facing information. |
