Sarah Gillies: Consumer interests front and centre of sector transformation

Expected power price rises this year will quite rightly open the door to much greater consumer scrutiny and concern about the current system.

For its part, the Electricity Authority Te Mana Hiko (Authority) is putting consumers at the front and centre of an ambitious and deliberate reform programme to increase available choices and give consumers greater control of their electricity use and costs.

While most households and businesses are passive investors in the system now, consumers do have choices. We are looking to expand these, and to empower and enable people to take more control of their electricity use and costs. This is high on our agenda for 2025, which sees a significant programme of regulatory actions ramping up through the year.

There is no ‘quick fix’ to this winter’s anticipated electricity crunch - the issues behind expected power price increases highlight the urgent need for systemic, long-term change.

On the immediate issues, the Authority is keeping a close watch on security of supply, the wholesale market, and retailer conduct, while progressing reforms to achieve lower power prices over the long-term. All of us in the sector must act quickly and together to shift the balance in favour of innovation, investment and consumer interests.

This week we released the first significant tranche of Energy Competition Task Force related consultation papers, and we’re on-track to complete this programme in June.

We’re ramping up our monitoring - with a firm lens on consumer protection - and working to close some gaps in security of supply information and reporting. This more up-to-date and comprehensive security of supply reporting is needed to enable robust risk management, particularly during times of market stress.

Incumbent market participants have a key role to play in shaping a more reliable, sustainable and consumer-centric system long-term. We know change will be uncomfortable for some players, and we’re committed to setting a pace that provides for participation in our decision making. However, we will not be deterred or distracted by the efforts of vested interests hoping to preserve the status quo.

It is our sincere hope that market participants will step up to meet or exceed the clear expectations we’ve set for consumer care and protection. However, if our monitoring indicates the need, we will not hesitate to protect consumer interests through the available regulatory measures.

This year is ‘crunch time’, when consumers will start to gain their share of the benefits our electricity system can provide, and Aotearoa New Zealand will benefit in return.

Sarah Gillies, Chief Executive

Electricity Authority Te Mana Hiko