From simulation to action: Industry Exercise 2025 recommendations

In April 2025, the Electricity Authority and System Operator ran a simulated Industry Exercise with electricity market participants. The exercise tested industry preparedness for an extended electricity supply shortfall that resulted in rolling outages.

We are grateful to all retailers, lines companies and direct-connect users who took part in the exercise. Thank you for your collaboration, responsiveness and support in helping to identify opportunities to improve our collective incident response.

We’ve pulled together key insights from the exercise, and we ask all participants to action the recommendations which will help strengthen our collective readiness for a major power system event and minimise the impact on New Zealanders. We recommend that:

All participants

• Update your business continuity plans and operational procedures to incorporate the lessons learned from the Industry Exercise 2025

Retailers and lines companies

• Update your security of supply communications plans and ensure your communications teams are well-prepared with templates and key messages/materials to use during a real event
• Have a process in place to regularly review security of supply communications materials in line with best practice communications

Lines companies and direct-connect users

• Review and update your participant rolling outage plans, including load ramp rates and savings targets, and ensure they are operationally workable
• Develop a rolling outage switching plan consistent with participant rolling outage plans and share it with the System Operator.

You can read all feedback and recommendations (for participants, the Electricity Authority and System Operator) in the following report. Note, Section 5 includes information on the eight recommendations for participants.

Industry Exercise 2025: Key insights and recommendations

We are here to support and welcome any queries to info@ea.govt.nz