Electricity Authority to level electricity competition playing field

The Electricity Authority Te Mana Hiko (Authority) says its decision to amend the Electricity Industry Participation Code 2010, to introduce non-discrimination obligations (NDOs), released today, will help level the playing field in the electricity market.

The NDOs require the four large gentailers (Contact Energy, Genesis Energy, Mercury NZ and Meridian Energy) to supply risk management contracts (hedges) on an even-handed basis to all buyers, meaning they cannot favour their own retail arms on price or non-price terms.

Electricity Authority Acting Chair Erik Westergaard said this move will strengthen competition, increase transparency, and provide information the Authority can use for monitoring and enforcement.

“The combined effect of these initiatives is to encourage market confidence which is a key enabler of the investment and innovation that improves consumer choice and puts downward pressure on prices.”

Gentailers will be required to submit plans to the Authority about how they will comply with the NDOs, and certify they are compliant, annually.

Gentailers must also submit six-monthly Retail Price Consistency Assessments (RPCAs) to the Authority to demonstrate that their retail price offers are justifiable in relation to their expected cost of electricity supply, and that an equally efficient retailer could compete with them on price.

Westergaard said the Authority is confident the benefits of the NDOs outweigh their costs.

“This intervention will promote transparency and confidence in the electricity markets without being overly disruptive.

“The NDOs can be enacted quickly and will not materially increase costs for gentailers. They should not be used as a reason to increase prices.

“In fact we should see downward pressure on prices and more options for consumers over time as a result of increased confidence and competition."

The NDOs will come into force from 1 July 2026. Gentailers’ implementation plans and the first RPCAs are due on 3 September.

Commerce Commission Chair Dr John Small says the NDO decisions complete the first tranche of work the Energy Competition Task Force committed to when it launched its original programme.

“Across eight initiatives and very tight timeframes, the Task Force has delivered real progress. The NDOs sit alongside wider recommendations, including strengthening hedge contract trading designed to address super peak demand periods, reviewing market making to ensure price transparency, and improving monitoring of over-the-counter trading.

“This NDO decision is a significant milestone in that programme, and we look forward to continuing our joint work with the Electricity Authority into 2026 to further strengthen the electricity market.”