New Zealanders get more choices for how we use, buy and sell electricity – and lower our power bills

New Zealanders will have more choices for how they use, buy and sell electricity – so they can lower their power bills – because of new market rules confirmed today by the Electricity Authority Te Mana Hiko (the Authority).

The Authority is changing the electricity market rules to give New Zealanders more control over their power use and costs. The changes, led by the Energy Competition Task Force (Task Force), will benefit all electricity consumers by putting downward pressure on power prices over time.

Electricity Authority Chair and Task Force member Anna Kominik says the changes are about helping New Zealanders to have more choices for how they consume and supply power than ever before – and rewarding choices that benefit the system and keep power prices down for everyone.

“In the very near future, we’ll all be making more active choices about when and how we consume and supply energy. The decisions we’re announcing today reset the market rules to encourage choices that contribute to our electricity system for the benefit of all power consumers.

“Consumers who engage as active players in the power market will become important contributors to a more sustainable and dynamic electricity system, and we will all benefit from this through lower power costs,” says Kominik.

The new rules mean large retailers (those with five per cent or more market share) will have to offer a pricing plan that gives consumers cheaper rates for off-peak electricity. The changes will also reward those households who supply power to the network from small-scale generation systems (such as rooftop solar and batteries) at times when it’s most needed to keep the country powered up.

Commerce Commission Chair and Task Force member, Dr John Small, says the changes will support New Zealanders making decisions about investing in rooftop solar systems with batteries (or other small-scale generation systems) and offer us new ways to lower our power bills.

“Currently, access to time-varying pricing plans for power use and supply is very limited. The decisions announced today will help drive retail innovation and ensure most New Zealanders have access to these plans within a year so they can benefit from cheaper off-peak power. They also strengthen the case for rooftop solar systems with batteries, by rewarding people with these systems for the savings they provide the network when selling power into the system at peak times.”

The new rules are part of changes the Electricity Authority and the Energy Competition Task Force are making to increase the supply, affordability and options for consumers.

The Authority will engage with large retailers and distributors over the coming months to provide further guidance on the changes it is making and how they might interact with other related policy work.