New Zealand’s energy security challenges have prompted regulators to sign a new Memorandum of Understanding (MoU).
The Electricity Authority (EA) and Gas Industry Company (GIC) will now share more information to improve market transparency. The agreement is intended to bolster oversight in sectors where competition is limited. It marks a response to growing unease over the country’s declining gas resources.
Enhancing Market Transparency in Energy Sector
The MoU sets out rules for how confidential information can be shared between the two regulators and under what conditions. It also establishes safeguards to ensure the integrity of decision-making in an industry where governance overlaps with market participation.
The agreement specifies among its provisions: “For the avoidance of doubt, the Authority may determine which of GIC’s Board members may or may not have access to information shared pursuant to this MOU and any applicable ISA (information sharing agreement).”
Managing Conflicts of Interest in Energy Regulation
The GIC’s board includes two “non-independent” directors: Mike Fuge, chief executive of Contact Energy, and Paul Goodeve, CEO of gas distributor Clarus. The MoU requires restrictions to prevent potential conflicts of interest where commercially sensitive information is involved.
Regulators Prioritise Energy Reliability and Stability
“This memorandum signals our priority to take a system-wide approach to ensuring energy is delivered to consumers in a reliable and efficient manner,” EA chief executive Sarah Gillies said.
The deal comes as gas reserves decline and electricity needs increase. Strengthened regulatory cooperation is expected to improve market stability and mitigate risks without resorting to direct interventions.