Electricity Authority consultation on 2022/23 and 2023/24 levy-funded appropriations open

The Electricity Authority today opened consultation for its 2022/23 and 2023/24 levy-funded appropriations.

Each year the Authority consults on its proposed levy to provide participants and stakeholders with the opportunity to feedback on the Authority’s planned funding for the year ahead.

Authority Chief Operating Officer, Richard Eglinton, says this is an important year for the Authority’s levy consultation.

“New Zealand’s electricity system is evolving rapidly. As the regulator of the market we need to ensure we are set up to support the large-scale rapid changes projected over the coming years.”

This year’s consultation covers a proposed levy increase for the 2022/23 and 2023/24 years as follows:

• a proposed permanent baseline increase of $0.5 million to the 2022/23 Electricity Industry Governance and Market Operations appropriation, and
• a proposed permanent baseline increase of $7.308 million to the 2023/24 Electricity Industry Governance and Market Operations appropriation (bringing the total increase over two years to $7.808 million).

The Authority is also signaling its intention to consult on a permanent baseline increase of a further $3.537 million to the Electricity Industry Governance and Market Operations appropriation for 2024/25 and outyears. Acknowledging the substantial increase in funding, the Authority will be taking part in an independent review of its baseline to be completed ahead of the 2024/25 levy consultation period.

In addition to the funding increases, the Authority is consulting on:

• maintaining the level of funding for the Managing the Security of New Zealand’s Electricity Supply appropriation ($6.0 million), and
• maintaining the level of funding for the Electricity Litigation Fund appropriation ($1.5 million).

While the proposed levy increases are more than previous years, the actual impact on consumers is relatively low, with household bills increasing by approximately $2 per year, the bills for commercial consumers by around $13.30 per year, and industrial consumer bills by approximately $75.65 per year. These figures are indicative and dependent on actual consumption amounts.

“This proposed funding increase will support us to deliver transformational projects. These will not only support the important transition to a net zero emissions economy but will ensure the Authority is protecting the interests of consumers. Building our capability in this way will help ensure we have the right people and skills to deliver a reliable and efficient energy future for New Zealand,” says Mr Eglinton.

The Electricity Authority is funded by the Crown through appropriations of public money. The Crown recovers the cost of this funding through a levy on electricity industry participants, which is then passed on to consumers via their electricity bills.

The consultation paper sets out the rationale behind the proposed levies and explains how to submit feedback. Consultation closes at 5pm, Tuesday 1 November 2022.