Energy Competition Task Force

Non-discrimination obligations: RPCA, uncommitted capacity and other matters

Upcoming Open Closed Decision
View submissions Submissions closed 24 March 2026
Share

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 (RPCA)

The Authority has also decided to codify the 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

In October 2025, the Authority consulted on proposed Code amendments to introduce principles-based non-discrimination obligations (NDOs) for the four large gentailers. The proposed NDOs address competition concerns in hedge markets arising from gentailers’ vertical integration and control of the flexible generation base.

This consultation sought feedback on specific aspects of the October proposal. Our thanks to everyone who made a submission.

Firstly, a core component of the proposed Code change was introducing a six-monthly Retail Price Consistency Assessment (RPCA) that would require gentailers to illustrate the link between their retail prices and their expected cost of supply. This is to demonstrate there are no barriers to an equally efficient retailer competing with a gentailer it relies on for wholesale supply.

We also consulted on RPCA guidance that will help us implement the RPCA as soon as possible and RPCA-related Code amendments.

Secondly, the proposed NDO 1(2) required that gentailers do not discriminate in favour of their own business units for the supply of uncommitted capacity without an objectively justifiable reason. This consultation sought feedback on two options that we believe responded to submitters’ concerns about uncommitted capacity that arose from the previous consultation.

We also proposed further Code changes to the proposal that gentailers are required to maintain non-discrimination policies, which specify in more detail the requirements for those policies, and changes to audit requirements.

Q&As

We received and responded to stakeholder questions about this consultation, and published our responses. We will update the following document as further questions are received: Stakeholder Q&A

We hosted an online Q&A session on 5 March to provide clarity and answer questions for those preparing submissions. Watch a recording of the session below.

Q&A session

Consultation paper

Non-discrimination obligations: Retail Price Consistency Assessment, uncommitted capacity and other matters - Consultation paper

Non-discrimination obligations: Retail Price Consistency Assessment, uncommitted capacity and other matters - Consultation paper

Submissions

Download all submissions (.zip)