New Zealand’s newly established Energy Competition Task Force has outlined a work programme aimed at enhancing the country’s electricity market. The Task Force, a collaboration between the Commerce Commission Te Komihana Tauhokohoko and the Electricity Authority Te Mana Hiko, with input from the Ministry of Business, Innovation and Employment, is focusing on two key areas: encouraging new generation and competition, and providing consumers with more control over their electricity usage.
Encouraging New Generators and Competition
The first package of work is designed to bring new generators and independent retailers into the market, enhancing competition and accelerating the development of new generation capacity, particularly in solar and wind energy. Commerce Commission Chair Dr. John Small highlighted the urgency of this work, especially in light of recent events such as last month’s fuel shortage.
“We are exploring improvements to wholesale contracting arrangements to better support investment in new solar and wind generation. Our goal is to enable a broader range of market participants, which should promote competition, leading to lower prices and greater energy security for consumers,” said Dr. Small.
The Task Force is considering several options, some previously suggested by advisory groups, and is evaluating trade-offs to ensure the most effective and timely promotion of competition.
Empowering Consumers with More Options
The second package of work focuses on regulatory changes to provide consumers with more options to manage their electricity use. Electricity Authority Chair Anna Kominik emphasized the importance of empowering consumers with new technologies and systems, such as time-of-use pricing, rooftop solar, and battery storage.
“By enabling consumers to take greater control over their electricity use, we aim to reduce their power bills and bring broader benefits to all consumers. For instance, the Task Force is considering options to rebate consumers who export surplus power or reduce usage during peak times. This could help reduce congestion on distributor networks and avoid the need for additional infrastructure, ultimately lowering system costs for everyone,” said Kominik.
Ongoing Work and Future Developments
The Energy Competition Task Force is treating this work as a priority, with ongoing investigations into the eight proposed initiatives. The Task Force will present its recommendations to the boards of both the Commerce Commission and the Electricity Authority in the coming months. Any proposed changes to market settings or regulations will undergo public consultation, ensuring stakeholders have the opportunity to provide input.
Source: miragenews.com
