Response to reported Code breaches improves

Figures on the compliance and enforcement activities of the Electricity Authority Te Mana Hiko highlight significant improvements in the response to reported breaches of the Electricity Industry Participation Code.

The Authority made decisions on 162 cases during the 2024/25 financial year, up from 68 the previous year, while 121 alleged breaches were reported during the period, up from 101 in the 2023/24 financial year.

During 2024/25, of the cases closed around 11% resulted in warning letters being issued and 10 investigations were commenced.

Before making a decision on an alleged Code breach, the Authority reviews and considers all the information provided. If necessary, we request further information from the reporting party or other relevant parties.

We conduct an assessment to determine the seriousness and overall impact of the breach. This helps us decide how to categorise and deal with the alleged breach in accordance with our Compliance strategy and Enforcement and Prosecution Policy.

Most of the cases were resolved within 216 days, which was an improvement on the previous year’s closure rate of 282 days. Since 2021/22, cases are being resolved 44% faster which reflects a substantial increase in enforcement activity and greater efficiency.

Alongside these improvements in enforcement activity and efficiency, the Authority continues to track wider trends to understand where non-compliance is concentrated and where regulatory attention may be needed. This longer-term view identifies emerging risks, and areas of strategic focus, as well as the most frequently breached provisions of the Code since 2019.

These are:

• Prudential requirements
• Submission information for reconciliation
• Dispatch instructions
• Settlement payment deadlines
• Grid protection settings
• Forecasting by intermittent generators.

These insights support the Authority’s strategic shift towards a more proactive, risk-based compliance model and reinforce the need for a broader suite of enforcement tools to respond proportionately across the spectrum of non-compliance.