Reviews into information disclosure provisions

The Electricity Authority Te Mana Hiko is progressing two reviews that focus on electricity industry competition. Promoting competition is at the heart of what we do, as it ensures consumers have more choice and more access to affordable electricity.

It’s important we make sure any rule we introduce, including those intended to promote competition, is monitored to see if it’s doing what was intended. That’s why we conduct post-implementation reviews. The Authority’s post-implementation review of the internal transfer price (ITP) and retail gross margins (RGM) information disclosure provisions is looking into the ongoing role and importance of information disclosure provisions introduced in response to a recommendation from the Government’s 2019 Electricity Price Review.

The Authority’s risk management review, initiated in December 2023, is testing whether the availability and pricing of risk management options, particularly over-the-counter contracts, creates a barrier to entry or expansion by retailers. That includes considering the generator-retailer internal relativities (such as ITPs).

As part of these reviews, the Authority has:

• requested and received substantial amount of information from non-integrated retailers and generator-retailers
• received feedback and views from stakeholders about the value of the ITP and RGM disclosures, including a recent report commissioned by the Consumer Advocacy Council questioning the robustness of the information.

The Authority has now received information and is analysing it to form initial views on the risk management review. Our intended timeline is to publish those initial views for feedback early in the last quarter of this calendar year.

At the same time, we will also publish the post-implementation review of the ITP and RGM disclosure provisions.

ITP and RGM disclosure data for the 2023 financial year will be published on the Authority’s website on 18 June 2024.