Electricity Authority issues request for information on Value of Lost Load study

The Electricity Authority has issued a request for information (RFI) to test market capability and interest in delivering an updated economic study of New Zealand’s Value of Lost Load (VOLL).

This RFI is aimed at economic and energy sector consultancies with the capability to undertake a robust economic study of VOLL this year or next, or with relevant expertise and knowledge of methodologies for estimating VOLL.

The Value of Lost Load estimates the economic value consumers place on access to electricity, and the economic cost of power outages.

The current default VOLL in the Electricity Industry Participation Code 2010 (Code) is $20,000/MWh. This value was set in 2005. Since then, New Zealand’s economy, technology use and reliance on electricity have changed significantly.

Through this RFI, we want to assess whether the market has the capability, capacity and interest to deliver a fit-for-purpose economic study to inform a potential update of the default Code value.

Consultancies that are well placed to undertake this work are encouraged to respond to the RFI and signal their capability.

The RFI closes on 8 May 2026. You can find all RFI details here.

An up-to-date VOLL would strengthen regulatory decisions about reliability settings, investment incentives, and system and market planning. It would also improve transparency about the trade-offs involved when the electricity system faces scarcity or constrained supply.

Responses to this RFI will help the Authority decide whether to proceed with a future request for proposal (RFP) to commission a full economic study of VOLL.