Monitoring, compliance and enforcement
Electricity Allocation Factor
Determinations of the Electricity Allocation Factor under the Climate Change Response Act 2002.
Overview
The Electricity Authority is required to calculate the Electricity Allocation Factor on an annual basis and notify the Minister of Climate Change on or before 31 July each year.
The Electricity Allocation Factor is used to determine how many emissions units are allocated to emissions-intensive, trade exposed businesses. It's an estimate of the effect of the New Zealand Emissions Trading Scheme on wholesale electricity prices.
The Electricity Allocation Factor for the 2025 calendar year is 0.516t CO2e/MWh according to our Determination of the 2025 Electricity Allocation Factor. We can provide a download to the output from the modelling that underpins the 2025 determination. To request this, please email info@ea.govt.nz with ‘EAF 2025’ in the subject line.
Timeline
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2 August 2024
Determination —
Project background
The Electricity Authority has a statutory responsibility under section 161FA of the Climate Change Response Act 2002 to determine and notify the Minister of Climate Change of the Electricity Allocation Factor each year.
The Electricity Allocation Factor is an estimate of the effect of the New Zealand Emissions Trading Scheme on wholesale electricity prices and determines how many emissions units are allocated to emissions-intensive, trade exposed businesses.
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