Latest news with #EnergyCompetitionTaskForce
Scoop
25-07-2025
- Business
- Scoop
Making It Easy To Get The Best Deal For Your Power
The Electricity Authority Te Mana Hiko (the Authority) will be making it easier for consumers to get the best deal for their power. The Authority has published a 'Consumer Mobility Roadmap' of upcoming proposed changes to simplify information and improve access to products and services to benefit consumers. The proposals signalled in the Consumer Mobility Roadmap will: make it easier for consumers to understand their power bills make it easier to compare power plans and providers, find better deals and switch increase choice and competition support innovators to bring new products and services to market enable a digital system to be built to serve people reshape the power system for a more decentralised and people-centric future. "This is not about consumers doing more - it's about creating a system that serves consumers better," Authority General Manager Retail and Consumer Andrew Millar says. "The changes we're proposing will build on our work to support a more competitive electricity market through the Energy Competition Task Force." Over the coming year the Authority will be engaging with the sector on the proposals, all designed to give consumers access to better information and more choice. "These changes include a new comparison and switching website and proposals to improve access to consumption data, set standards for power bills, and enable consumers to have more than one power retailer," Millar says. Currently, information on power bills varies across retailers and information on power use and power products is hard to access and inconsistent. "Our research indicates that 38% of consumers haven't changed providers in over five years and one in three lack confidence in understanding their power bill," Millar says. "We need to address the barriers for consumers, including confusing pricing structures that make it difficult for people to compare offers and understand whether they are getting the best deal. We also need to unlock access to data as this is crucial for innovation and competition." "We'll be inviting market participants to contribute their insights and perspectives to our policy work," says Millar. "We are committed to updating the electricity market rules to ensure New Zealanders get the choice and value they deserve."
Scoop
15-07-2025
- Business
- Scoop
New Zealanders Get More Choices For How We Use, Buy And Sell Electricity - And Lower Our Power Bills
New Zealanders will have more choices for how they use, buy and sell electricity - so they can lower their power bills - because of new market rules confirmed today by the Electricity Authority Te Mana Hiko (the Authority). The Authority is changing the electricity market rules to give New Zealanders more control over their power use and costs. The changes, led by the Energy Competition Task Force (Task Force), will benefit all electricity consumers by putting downward pressure on power prices over time. Electricity Authority Chair and Task Force member Anna Kominik says the changes are about helping New Zealanders to have more choices for how they consume and supply power than ever before - and rewarding choices that benefit the system and keep power prices down for everyone. "In the very near future, we'll all be making more active choices about when and how we consume and supply energy. The decisions we're announcing today reset the market rules to encourage choices that contribute to our electricity system for the benefit of all power consumers. "Consumers who engage as active players in the power market will become important contributors to a more sustainable and dynamic electricity system, and we will all benefit from this through lower power costs," says Kominik. The new rules mean large retailers (those with five per cent or more market share) will have to offer a pricing plan that gives consumers cheaper rates for off-peak electricity. The changes will also reward those households who supply power to the network from small-scale generation systems (such as rooftop solar and batteries) at times when it's most needed to keep the country powered up. Commerce Commission Chair and Task Force member, Dr John Small, says the changes will support New Zealanders making decisions about investing in rooftop solar systems with batteries (or other small-scale generation systems) and offer us new ways to lower our power bills. "Currently, access to time-varying pricing plans for power use and supply is very limited. The decisions announced today will help drive retail innovation and ensure most New Zealanders have access to these plans within a year so they can benefit from cheaper off-peak power. They also strengthen the case for rooftop solar systems with batteries, by rewarding people with these systems for the savings they provide the network when selling power into the system at peak times." The new rules are part of changes the Electricity Authority and the Energy Competition Task Force are making to increase the supply, affordability and options for consumers. The Authority will engage with large retailers and distributors over the coming months to provide further guidance on the changes it is making and how they might interact with other related policy work. The Authority's decision papers are now available on our website. Energy Competition Task Force Package Two decisions webinar A webinar is being held where Electricity Authority Te Mana Hiko and the Commerce Commission Te Komihana Tauhokohoko Task Force representatives will talk through the decisions and take questions. When: 9.30am-10am, Wednesday 16 July Register: Microsoft Virtual Events Powered by Teams Notes: The new requirement for large retailers to offer 'time-of-use' plans will only apply if they haven't made material progress in offering these pricing plans by 30 June 2026. The Authority will closely monitor retailers' progress and act swiftly to enforce the new rules where required. The Authority decided rebates for supplying power to the network when it is needed should reflect the broader, long-term benefits provided In response to feedback from submitters, the Authority changed its approach to calculating the rebates (negative charges) paid when consumers supply power to the network. Rather than reflecting the specific value consumers provide by helping to relieve congestion at specific locations on the network, the rebates will instead reflect the broader, long-term benefits provided. This change in approach is important and recognises that, given the tools available now, distribution pricing is better suited to sending broad signals than managing specific network constraints. In addition, this change will mean that the amount paid when consumers supply power will also vary, and that these rebates will fairly reflect the true value of the power they provide to the network. This will encourage people to supply power to the network when it's most needed. The Authority did not consider rebates that mirror peak consumption charges appropriate because: requiring distributors to apply rebates that mirror peak consumption charges could cause additional costs to the network (which we all pay for through lines costs). these costs mean the average value of supply is likely to be lower than the average value of reduced demand on the network. supply at peak times, which will most likely come from battery storage, is also likely to be more responsive to price than demand and could lead to 'battery dumping' when stored energy is released all at once, creating issues for network management. About the Energy Competition Task Force The Energy Competition Task Force was established by the Commerce Commission Te Komihana Tauhokohoko and Electricity Authority Te Mana Hiko in August 2024 to investigate ways to improve the performance of the electricity market. The Task Force is considering eight initiatives that will encourage more and faster investment in new electricity generation, boost competition, enable homes, businesses and industrials to better manage their own electricity use and costs, and put downward pressure on prices.
Scoop
27-05-2025
- Business
- Scoop
Energy Competition Task Force Roadmap To Reward Industrial Demand Flexibility
The Energy Competition Task Force (the Task Force) has today set out its proposed vision and roadmap for unlocking industrial demand flexibility. The aim is to better support electricity market reliability and benefit consumers by promoting a competitive, reliable, and efficient electricity industry. The Task Force has also released an update paper on its power purchase agreements (PPAs) work to support more new intermittent generation development, such as wind and solar. Industrial demand flexibility The Electricity Authority Te Mana Hiko (the Authority) is seeking feedback on an industrial demand flexibility issues and options paper that sets out the vision and roadmap. The paper seeks input into how best to unlock more industrial demand flexibility. This could include payments to industrial consumers to reduce demand for short periods, where this is efficient and is likely to deliver long-term benefit for consumers. The roadmap proposes 11 actions to better incentivise short-term flexibility in the electricity market from industrial consumers to support both reliability and competition. "The need for flexibility in our electricity system is becoming increasingly important as the level of intermittent generation - such as from solar and wind - increases and thermal generation declines," says Commerce Commission Chair and Task Force member, Dr John Small. "Currently, bigger electricity users might adjust their demand to avoid paying high costs for energy, but we believe in certain circumstances it may be appropriate to pay them to provide that flexibility. This could help these consumers to plan and invest with more certainty, while also supporting electricity supply reliability for the longer term," says Small. Electricity Authority Te Mana Hiko Chair and Task Force member Anna Kominik says: "Industrial demand flexibility can be particularly useful during times of very high demand and tight supply, such as winter mornings and in the evenings. Its potential is expected to grow over time, including as new industrials come online, such as new industries and data centres particularly those optimised for this form of flexibility. "We know that electricity supply is currently very tight, so we've identified two actions that could be in place ahead of winter 2026. We'll shortly seek input from stakeholders on a proposed Emergency Reserve Scheme and intend to set up an industry co-design group process to develop a standardised tradeable product for industrial demand flexibility. "We are proposing nine further actions over the next five years to help lay the foundations for efficient use of demand flexibility across the electricity system - and we're interested to hear stakeholder views on these," said Kominik. Power purchase agreements The Task Force has considered submitters' feedback and determined that its initial proposal to allocate firming for PPAs is not the best way to encourage investment in new power generation projects. The Task Force has identified this option risks distortions to efficient market operations, which could negatively impact investment in new generation and lead to higher prices for consumers in the long term. Instead, the Task Force considers access to firming is best addressed via ongoing work on standardised flexibility products and the proposed level playing field measures (particularly the non-discrimination obligations), as well as complementary initiatives to encourage PPAs. These options enable new investment without the risks associated with allocation. This new approach is set out in an update paper. Visit the Task Force webpage for more information about both papers and details on how to have your say on the industrial demand flexibility consultation. Notes: About the Energy Competition Task Force The Energy Competition Task Force was established by the Commerce Commission Te Komihana Tauhokohoko and Electricity Authority Te Mana Hiko in August 2024 to investigate ways to improve the performance of the electricity market. The Task Force has been considering eight initiatives that will encourage more and faster investment in new electricity generation, boost competition, enable homes, businesses and industrials to better manage their own electricity use and costs, and put downward pressure on prices. Firming Firming refers to technology used to store and release intermittent energy, usually either hydro storage or batteries. PPAs PPAs are long-term contracts to support generation. They can provide a route to market for entrant generators and an alternative procurement option for electricity buyers or traders.
