Energy Competition Task Force

Level playing field Code amendments

Upcoming Open Closed Decision
View submissions Submissions closed 2 December 2025
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Decision

We have decided to amend the Electricity Industry Participation Code 2010 (Code) to impose non-discrimination obligations (NDOs) on the four large gentailers regarding their trading of risk management contracts (hedges).

The NDOs require gentailers to supply risk management contracts on a non-discriminatory basis and will apply to all risk management contracts offered by gentailers.

They are intended to provide independent generators and retailers with greater confidence that they can compete on a level playing field, promoting competition and the efficient operation of the electricity industry for the long-term benefit of consumers.

The NDOs will prevent gentailers from:

  • discriminating between buyers, or against buyers in favour of their own internal business units, for the supply of risk management contracts
  • discriminating against buyers in favour of their own internal business units when pricing risk management contracts.

Retail price consistency assessment

The Authority has also decided to codify the retail price consistency assessment (RPCA), which is how gentailers will show they are complying with the NDOs.

  • The RPCA will require gentailers to demonstrate an economically justifiable link between the expected cost of electricity supply and their retail price offers.
  • The Code will require gentailers to conduct an RPCA as at 1 January and 1 July each year. The first RPCA is due on 3 September 2026.

Monitoring and compliance

The Authority will actively monitor compliance with the NDOs. The monitoring approach will draw on a range of information sources, including gentailers’ non-discrimination policies, RPCAs, and information obtained through the Authority’s broader monitoring activities.

Timing

The implementation dates we have set strike a balance between implementing the NDOs as quickly as possible and ensuring that gentailers have the time required to update their processes and systems. The NDOs will come into force from 1 July 2026. Gentailers’ implementation plans, and the first RPCAs are required 45 days later, on 3 September.

The regular reporting requirements will begin as follows:

  • 1 July 2026 – Commencement date
  • 3 September 2026 – First RPCA provided to the Authority; gentailers provide and publish implementation plans
  • March 2027 – Second RPCA due as part of ongoing requirement for half yearly reporting
  • 2 September 2027 – Third RPCA provided to the Authority
  • 30 September 2027 – Annual reports provided to the Authority (and published within five working days) including audit reports
  • 8 March 2028 – Fourth RPCA

Further amendments

The Authority will consider whether Code and guidance amendments are necessary to improve workability or effectiveness of these reforms. We intend to undertake an effectiveness review of our broader pro-competition hedge market package in 2027.

Decision paper

Non-discrimination obligations - Code amendment - Decision paper

Non-discrimination obligations - Code amendment - Decision paper

Consultation

Following our first Level playing field consultation, we sought feedback on proposed Code changes necessary to introduce mandatory non-discrimination obligations.

The proposed amendments to the Code would impose principles-based non-discrimination obligations that the four large gentailers – Genesis, Contact, Meridian and Mercury – would have to follow.

This would prevent the gentailers from giving preferential treatment to their retail arms for hedge contracts. Instead, they would have to make these contracts available to all industry participants on effectively the same terms as they use when trading internally. This would ‘level the playing field’ so independent retailers and generators can better compete with the gentailers.

The non-discrimination obligations form part of a package of pro-competition interventions to boost competition, build confidence in the electricity market, and ultimately give New Zealanders better access to affordable electricity.

Q & A

We received questions from some stakeholders about this consultation.

Read our responses

Webinar

We hosted a webinar on Friday 17 October to answer questions about the Level playing field measures consultation paper and the Code amendments we are proposing. You can watch it below and view the presentation slides.

Webinar on 17 October 2025

Consultation paper

Level playing field proposed Code amendments - Consultation paper

Level playing field proposed Code amendments - Consultation paper

Submissions

Download all submissions (.zip)