Have your say on our proposed levy-funded appropriations 2024/25

Today the Electricity Authority Te Mana Hiko released a consultation paper which sets out, and seeks feedback on, the Authority’s levy-funded appropriations for 2024/25.

We’re seeking an annual increase of $14.2 million to our baseline funding to:

• pay for increased service provider costs to operate the electricity system and markets
• enable us to keep pace with the rate of change required to support an orderly low-emissions transition and better serve all consumers.

We invite feedback on our consultation paper by 30 January 2024 to inform our advice to the Minister for Energy on the appropriate level of funding and levies for our work. The Minister’s decision and our funding level for 2024/25 will be announced on Budget Day 2024.

The Electricity Authority’s operating context has changed - the electricity system is undergoing transformation at an unprecedented scale. We have made significant changes in the past year with existing resources, but we’re under pressure and struggling to keep up without an increase in funding.

The Electricity Authority seeks an annual increase of $7.6 million for service provider costs and $6.6 million for the Authority’s operating costs. This would take our total funding to $115 million for 2024/25.

The cost to households would be an increase of about $2.76 per year (about 23 cents a month) for the average household and about $16.32 more a year ($1.36 a month) for the average commercial entity. This will take the total estimated annual levy cost to $23.29 for the average household (about $1.94 a month) and $138.40 for the average commercial entity (about $11.53 a month).

The Electricity Authority is very conscious of the current fiscal environment and the pressure already on households and businesses. The requested additional funding is a necessary investment to ensure electricity consumers will reap the benefits of innovation and competition at least cost, while receiving a reliable power supply.

With increased funding, the Authority can catch up and keep up with the scale and pace of change required to keep the lights on and make sure all New Zealanders benefit. The small increase to annual bills will support better outcomes and access to affordable electricity for all consumers.

We welcome feedback on our consultation paper by 30 January 2024 via this online form.

View consultation.