Enabling investment and innovation
Risk management review
Reviewing risk management options for electricity retailers.
Overview
We are working to increase our understanding and the transparency of risk management options for electricity retailers. This work will focus particularly on over-the-counter (OTC) risk management contracts, following on from the development of the voluntary OTC Code of Conduct.
This review includes considering whether the current approach to pricing OTC contracts (including availability, shape and price), and other risk management options, is effectively creating a barrier to entry or expansion in the retail electricity market for retailers, and therefore harming competition.
We are engaging with the Commerce Commission on this review, including drawing on their competition economics and investigation expertise.
We are committed to being as transparent as possible about our work on this project. Any proactively released information will be published below.
Timeline
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20 March 2024
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Project background
Effective competition in the retail electricity market is in the long-term interests of consumers, as it puts downward pressure on retail prices and encourages a greater variety of products and services.
This project focuses on the availability of efficient risk management options as an important enabler of retail market competition.
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