Levy-funded appropriations

2026/27 Levy-funded appropriations

Upcoming Open Closed Decision
View submissions Submissions closed 16 December 2025
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Decision

Thank you to all who engaged in this consultation. There was strong support, with 89% of submissions supporting the approach we proposed. This feedback helped shape both our funding request and our priorities for the year ahead.

Following Budget 2026, the Government confirmed a net increase of $0.3 million to the Electricity Industry Governance and Market Operations appropriation (around 3 cents on an average annual household bill), taking the Authority’s total funding to $120.0 million for 2026/27.

This increase is targeted solely at covering contractual cost increases, while the Authority continues to absorb its own cost pressures. It comprises an increase to the permanent baseline of the Electricity Industry Governance and Market Operations appropriation of $0.8 million, offset by some phasing of funding for the System Operator’s real-time pricing work.

We will continue to communicate transparently about how our levy funding is used and the outcomes we deliver with it.

Our upcoming Statement of performance expectations 2026/27 (published by 1 July 2026) will include our updated strategic framework and the five strategic priorities that have shaped our work programme.

Key points

  • We are keeping our operating costs flat in 2026/27.
  • We will absorb more than $3 million in cost pressures through efficiency initiatives, prioritisation and organisational improvements.
  • A small funding increase has been approved to meet inflation‑linked contractual costs for third‑party service providers who run the electricity system and markets.
  • These service providers account for around two‑thirds of our total costs, making these increases largely unavoidable.
  • This funding will enable us to continue to deliver a priority work programme for 2026/27 focused on ensuring industry delivers reliable electricity at lowest cost for consumers.

View funding request

Consultation

Electricity is essential to the livelihood of all New Zealanders. The work of the Electricity Authority supports an electricity sector worth $23.8 billion.

We are funded by the Government through a levy on industry participants. It’s on-charged through your electricity bill – about 0.5% of a typical monthly household bill.

Each year, we invite feedback on our funding and how it will be used to inform our request to the Government.

For our work programme for 2026/27, we sought your feedback on our proposal to absorb up to $3.2 million in expected cost increases next year for the enforcement of level playing field rules (subject to consultation and Board decision) and inflation-related increases to the Authority’s own operating costs.

We also proposed to absorb expected costs as a result of the Government’s commitment to strengthening the Authority following the Frontier report.

We proposed a small increase to our Electricity Industry Governance and Market Operations appropriation to cover inflation-linked contractual obligations to our third-party service providers, who make up almost two-thirds of our costs.

For the Authority’s other two appropriations, Managing the Security of New Zealand’s Electricity Supply and the Electricity Litigation Fund, we proposed that these two appropriations remain the same as previous years.

Consultation paper

Levy-funded appropriations 2026/27 - Consultation paper

Levy-funded appropriations 2026/27 - Consultation paper
Levy summary 2026/27

Levy summary 2026/27

Submissions

Download all submissions (.zip)