Latest news with #Kominik
Otago Daily Times
16-07-2025
- Business
- Otago Daily Times
New rules for big electricity retailers, cheaper off-peak power prices
Electricity sector rules changed to force lower off-peak power prices Retailers with +5 pct market share required to participate Consumers selling power from solar panels-batteries to get better prices Electricity Authority says it's about giving consumers more choice Big electricity retailers will have to offer cheaper prices for off-peak power use prices, and fair prices to people who sell surplus power to the grid from rooftop solar panels at peak times. The Electricity Authority is changing sector rules to require retailers with more than five percent market share to offer time of use prices from the middle of next year, after a report by a joint task force of the authority and the Commerce Commission. The changes were aimed to give consumers more choice in how and when they use power, and put downward pressure on prices. "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," Commerce Commission chair John Small said. "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." Electricity Authority chair Anna Kominik said the changes would give consumers more choices for how they consume and supply power, and reward choices that benefit the system and keep power prices down. "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," Kominik said. The changes mean retailers will have to offer fair prices to people who sell surplus power to the grid from roof top solar panels at peak times. Photo: Fabian Rieger / 123RF Big power sellers, lines companies targeted The changes would directly affect the big four generator-retailers - Contact, Genesis, Mercury, Meridian - which have about 83 percent of the retail market. In background information, the authority said none of the large retailers offered time-of-use plans to all customers, and for those that did it benefited owners of electric vehicles. It said time-of-use pricing would mean cheaper power at off-peak times, and more expensive power at peak times, which it defined as typically on weekday mornings between 7-10am, and evenings between 5-9pm. Off-peak times were usually overnight, in the middle of the day or on weekends. It said heavy electricity users would benefit, but those unable to change their consumption habits were unlikely to save money. Lines companies would also be covered by the rules changes in giving a rebate to consumers who upload power at peak time to the electricity from sources such as solar panels and batteries. Kominik said the authority would contact large retailers and distributors over the coming months on the changes, which would come into effect the middle of next year.
Otago Daily Times
16-07-2025
- Business
- Otago Daily Times
New rules for big energy retailers
- Electricity sector rules changed to force lower off-peak power prices - Retailers with +5 pct market share required to participate - Consumers selling power from solar panels-batteries to get better prices - Electricity Authority says it's about giving consumers more choice. Big electricity retailers will have to offer cheaper prices for off-peak power use prices, and fair prices to people who sell surplus power to the grid from rooftop solar panels at peak times. The Electricity Authority is changing sector rules to require retailers with more than five-percent market share to offer time of use prices from the middle of next year, after a report by a joint task force of the authority and the Commerce Commission. The changes were aimed to give consumers more choice in how and when they use power, and put downward pressure on prices. "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," Commerce Commission chair John Small said. "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." Electricity Authority chair Anna Kominik said the changes would give consumers more choices for how they consume and supply power, and reward choices that benefit the system and keep power prices down. "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," Kominik said. The changes mean retailers will have to offer fair prices to people who sell surplus power to the grid from roof top solar panels at peak times. Photo: Fabian Rieger / 123RF Big power sellers, lines companies targeted The changes would directly affect the big four generator-retailers - Contact, Genesis, Mercury, Meridian - which have about 83 percent of the retail market. In background information, the authority said none of the large retailers offered time-of-use plans to all customers, and for those that did it benefited owners of electric vehicles. It said time-of-use pricing would mean cheaper power at off-peak times, and more expensive power at peak times, which it defined as typically on weekday mornings between 7-10am, and evenings between 5-9pm. Off-peak times were usually overnight, in the middle of the day or on weekends. It said heavy electricity users would benefit, but those unable to change their consumption habits were unlikely to save money. Lines companies would also be covered by the rules changes in giving a rebate to consumers who upload power at peak time to the electricity from sources such as solar panels and batteries. Kominik said the authority would contact large retailers and distributors over the coming months on the changes, which would come into effect the middle of next year.
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
30-04-2025
- Business
- Scoop
Electricity Authority Seeking Ideas On Giving ‘Power Back To The People'
Imagine a future where your EV - literally a battery on wheels - stores the energy captured from your rooftop solar panels ensuring big savings on monthly bills and enabling you to sell surplus energy to the grid during periods of high demand. Or, where communities, iwi, and hapū, can generate their own renewable energy, sharing set-up costs, savings and other benefits, increasing community resilience and supporting those in their community experiencing energy hardship. Thanks to distributed energy resources like solar panels, smart digital technologies and reducing costs of the technologies involved these opportunities are much closer than we think. Empowering and enabling consumers and communities to fully participate in and benefit from a more decentralised electricity system is the focus of a green paper released by the Electricity Authority Te Mana Hiko (Authority) today. The paper, 'Working together to ensure our electricity system meets the future needs of all New Zealanders' aims to secure industry, iwi and hapū, community and stakeholder input into what a decentralised electricity system could look like, and the pathways to achieving it over the coming years. Electricity Authority Chair Anna Kominik says decentralisation is literally giving power back to the people. "In the electricity sector, decentralisation provides an option to shift from large scale electricity generation at a small number of sites across the country, to smaller scale renewables and other energy resources located closer to consumer demand. This can support greater resilience, sustainability, security and lower power costs. At a local level it improves energy independence and opportunities for economic development," she says. But decentralisation also presents challenges. These include integrating systems, funding and finance barriers, ensuring equitable access to benefits, and creating appropriate governance structures and regulation. Kominik acknowledges there's a wide range of views on these issues: "The Electricity Authority is looking to the future of how consumers access electricity and how the system needs to change to enable this. The Authority will be engaging with industry, iwi, communities and consumers in the coming months to help shape the future regulatory framework that ensures consumers have access to affordable electricity that meets their needs. Views on decentralization will also contribute to a suite of other changes the Authority has underway for consumers. Some of these include proposed changes to see Kiwis fairly paid for the solar power they export to the grid, in particular into congested parts of the network. The Authority's data shows that to the end of March 2025, there were 74,757 connections with solar installed, 68,292 of which are residential connections. New residential solar connections have been steadily increasing month-on-month and are up more than 18% over the last year. Those connections currently contribute over 336 megawatts of energy, but Kominik says there's lots of room for continued growth. And at a community level there are also valuable case study projects helping to inform the Authority's thinking on a decentralised system. - With its exposure to extreme weather events a remote community at Castle Hill in the Southern Alps is looking to build resilience through a decentralised energy system which will power their community hall, and the local freshwater and wastewater systems in the event of civil defense emergencies. - The community of Tākaka is working together to install solar panels and a 2kW battery allowing power sharing between homes behind a single meter. The first phase proof of concept initiative is highlighting some of the early barriers, and opportunities to scale up. - A similar scheme is being trialed in Franklin which aims to cover 80-90% of annual energy bills for three family services organisations participating in the pilot. Kominik says it is likely that communities and individuals will increasingly embrace the concept of energy independence, with decentralised systems empowering them to take control of their energy production and consumption. Working together to meet the needs of New Zealanders | Our consultations | Our projects | Electricity Authority:
