Final alignment report supports decision to mandate consumer care protections

The Electricity Authority Te Mana Hiko (Authority) has released its final alignment report under the voluntary Consumer Care Guidelines (Guidelines). The report looks at retailers’ self-reported alignment with the Guidelines. The 2023/24 report highlights good levels of retailer alignment over the past three years, but also uncovered differing interpretations and application of recommendations within the Guidelines.

“When we introduced the Guidelines as voluntary in 2021, we noted mandating may be necessary if they did not produce satisfactory outcomes for consumers,” says Airihi Mahuika, General Manager, Legal, Monitoring and Compliance. “Our decision to mandate the Guidelines will ensure these important consumer protections are applied consistently by retailers,” explains Mahuika. “Consumers will be able to expect the same delivery of consumer care, no matter which power company they are signed up to.”

The new Consumer Care Obligations (Obligations) will set clear minimum standards of care, ensure consistency across the retail market, and enable the Authority to more effectively monitor consumer outcomes. From next year, the alignment report will be replaced with compliance reporting.

“We have been pleased to see increased engagement from retailers in the alignment report process, particularly at a time when they will be preparing to implement the mandatory Obligations.”

The combined customer base of the 43 retailers who reported full alignment covers around 96% of New Zealand’s residential consumers. 43 of the 48 retailers who provided alignment statements are fully aligned. Alignment from small retailers has also improved, and in the past year large and medium retailers have continued to report full alignment with parts of the Guidelines related to protections for medically dependent consumers.

“These are promising statistics ahead of the protections being mandated next year,” says Mahuika.

Final decisions on the Obligations will be published in December. The Authority announced its decision earlier this month to allow for a three-month implementation period for all but two of the Obligations. From 1 January 2025, retailers will be prohibited from disconnecting customers they know to be medically dependent, and must ensure retailer fees are reasonable. All other protections will be effective from 1 April 2025.

View project: Consumer Care Guidelines