Joint open letter calls for efficient solutions to growing networks

Electricity sector regulators are calling for distributors to actively consider non-network solutions and support their use where they improve network efficiency and reduce costs.

Non-network solutions are alternatives to building more poles, wires and other infrastructure to meet New Zealand’s growing electricity demand. They include flexible electricity use and supply, energy efficiency, distributed generation and storage. They have the potential to be delivered faster and at lower cost than traditional poles and wires solutions.

In a joint open letter to distributors, the Electricity Authority, the Commerce Commission and the Energy Efficiency & Conservation Authority (EECA) acknowledge that many are already considering deploying non-network solutions, and regulatory changes are further accelerating their use.

But there are further opportunities to be realised and distributors are key to enabling a competitive market for these solutions.

The letter outlines three broad actions the regulators expect distributors to take to enable efficient non-network solutions that:

1. ensure both non-network and network solutions are considered in network planning
2. use price signals that encourage consumers to flex their electricity use and supply when the network is nearing capacity so it benefits them and defers costly network upgrades
3. better enable the market to offer competitive non-network solutions, for example through transparent, standardised procurement processes across all distributors.

The regulators invite distributors and others to email their feedback on the actions in the letter to distribution.feedback@ea.govt.nz

Feedback will help inform future thinking, priorities and work programmes across the Authority, Commission and EECA.

The regulators will continue to engage with interested parties to monitor progress and identify any regulatory or operational barriers.