Industry
The electricity industry is large, complex and technical. Here you can learn about how different parts of the sector operate and interact to bring electricity to you across New Zealand.
How the electricity industry works
Supplying power to homes and businesses across New Zealand involves three key elements: generating electricity, transporting electricity to distribution companies, and then selling it to customers.
New Zealand's system operator is Transpower. They are contracted to co-ordinate electricity supply and demand to make sure the lights stay on at the lowest possible cost.
So, how does it work? Simply put, the power produced from five big generators goes into the national grid at 52 points across New Zealand. It's transmitted through high voltage power lines and is then distributed through network companies. Retailers then sell that electricity to residential and business customers.
New participant?
Find out how to register and participate in the electricity industry.
Industry information
Learn about how different parts of New Zealand's electricity sector operate, our responsibilities as the regulator and industry participants' obligations.
Wholesale market
Electricity is bought and sold on the wholesale or spot market.
We work to ensure the wholesale market is efficient, reliable and competitive by developing the policy, systems and rules for the buying and selling of wholesale electricity.
Distribution
Distribution companies provide and maintain the power lines that carry electricity from the grid to your home or business.
We oversee distributors' interactions with other industry participants and the parts of their operation that have obligations under the Code.
Transmission
Electricity is transported across New Zealand through the grid to local substations and then to homes and businesses.
We determine transmission pricing policy and grid reliability standards.
Retail market
Retailers sell electricity to residential and business customers.
We oversee the retailer processes that deal with accuracy of metering, meter reading and customer switching. We also work to minimise the barriers to entry for new retailers.
Operating the market
We contract a range of market operation service providers to operate the electricity markets efficiently. We focus on creating fit-for-purpose market services that increase market efficiency, ensure effective market operation and facilitate market development.
Did you know we publish weekly trading conduct reports?
You can learn what happened in the wholesale market and see if any trading periods have been highlighted for further analysis.
Eye on electricity
