Update on our distributor guidance to support a competitive flexibility services market

We’re finalising our ‘Guidance for distributors involved in the flexibility services market’, which is expected to be published in early 2026.

The finalised guidance is informed by feedback on the draft version. We received this feedback as:

• summaries of group discussions in an online workshop in June 2024
• individual written feedback immediately following the workshop
• responses to our survey of workshop participants in May 2025.

All feedback is now available on the Distributor involvement in flexibility services market webpage.

The guidance includes seven principles with examples and details our expectations for how distributors should operate to distance the flexibility services they provide from their core business.

We recognise distributors have an important role to play in the development and use of flexibility services, such as home solar and battery systems, controllable water heaters and time-of-use charging.

But there is a risk – real or perceived – that because the way the distribution market is structured, other flexibility service providers may not have the same natural advantages as distributors.

Creating a more even playing field minimises the risk and supports the development of a more competitive flexibility services market.

The Electricity Authority Te Mana Hiko wants to enable more flexibility in the electricity system to help strengthen security of supply and resilience, and lower overall system costs that would otherwise be passed onto consumers.

This work began in early 2024 and was paused while we focused on higher priority projects in the later part of 2024 and early 2025.

About distributor involvement in the flexibility services market