Large electricity retailers in New Zealand must now offer time-of-use pricing, under new rules introduced by regulators this week. The move targets peak-time pressure on the grid and aims to bring down household power bills.
Regulators Raise Concern Over Slow Time-of-Use Adoption
Only about 220,000 households have adopted time-of-use pricing, accounting for just 10% of the market. Commerce Commission chair John Small described the figure as “disappointing.” The Electricity Authority expects full compliance by June 2025, but officials want companies to move more quickly.
Push to Improve Electricity Plan Comparisons
Officials have introduced new rules to remove barriers that limit consumers’ ability to compare electricity plans. The changes mandate transparency across and within retailers. The Electricity Authority will monitor compliance to ensure TOU plans are competitively structured. “There would be monitoring to ensure the offerings were competitive,” said EA chair Anna Kominik.
Consider Structural Changes to Address Market Power
Regulators are considering structural changes to tackle concerns around market dominance. Contact, Genesis, Mercury, and Meridian have been accused of inflating wholesale electricity prices and disadvantaging independent retailers. Broader reform decisions are due from the Electricity Authority and the Commerce Commission’s taskforce by August.
Industry Groups Demand Government Act on Electricity Reform
A group of industry and consumer organisations has publicly called on Prime Minister Christopher Luxon to take immediate action on electricity market reform. In an open letter, signatories including Electric Kiwi, Consumer NZ, 2degrees, Octopus, and MEUG said,
“Our energy market is broken. In its current form, it has failed to serve regular New Zealanders, businesses, and our national infrastructure needs.” The letter warned that delays in new generation are “sustaining high prices, and contributing to the energy supply crisis we now face.”
Luxon declined to address market structure reform directly, citing gas shortages as the primary issue. MEUG, meanwhile, raised doubts about political support for structural separation, stating: “We just do not think all three parties in the governing coalition will agree on it.” Industry participants have proposed operational changes instead.