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Electricity Price Review

The Terms of Reference for the Government’s review of the electricity sector were published in March 2018. The Review, which covers the entire electricity industry, will investigate whether the price paid by end-consumers for electricity is fair and equitable. The impacts of both market conduct and regulation will be considered.  The role and effectiveness of current regulatory structures round competition and the ability of the current regulatory environment to respond to emerging technologies is also a Government priority and a key focus of the Review.

The Association is supportive of the Review and highlights the importance of a well-functioning electricity system that can innovate and is able to respond to the high level of expected demand growth as New Zealand transitions to a low-emissions economy.

The Expert Advisory Panel released their first Report in August 2018 with submissions required by 23 October.  A further report on proposed options to address the issues identified will be released in January 2019 for consultation with a final report to the Minister of Energy and Resources in April / May 2019.

The First Report addresses a number of current industry issues that are important to the wind industry including price structures, finalising transmission pricing and distribution. NZWEA is supportive of a number of the Report’s key points.

Key areas the Association focused on in its submission include:

  • The need to change electricity price structures to reflect production and delivery costs (particularly at peak demand periods).
  • The need for consistency of regulatory positioning and to makes changes to the National Policy Statement for Renewable Electricity Generation and National Policy Statement on Electricity Transmission.
  • Implementing a new National Environmental Standard for small renewable developments.
  • The importance of finalising transmission pricing and agreeing a long-term position on distributed generation connection costs.
  • The importance of demand side management and utilising storage capabilities for load shifting.

The Association’s submission can be viewed here:
NZWEA Submission on Electricity Price Review First Report

The First Report and more information on the Electricity Price Review is available on the Ministry of Business Innovation and Employment’s website here:
https://www.mbie.govt.nz/info-services/sectors-industries/energy/electricity-price-review