29 OCTOBER 2004 NEW ZEALAND GAZETTE, No. 139 3451

19
The Commission should consider options such as pre-payment meters, alternative payment
options (such as advance payments, more frequent payments or smoothed payments) and
bonds. In principle, the Government considers that bonds in excess of the value of one month’s
consumption by an average household are inconsistent with fairness.

Arrangements in the event of retailer insolvency

20
The Commission should establish arrangements to ensure an orderly transition for consumers in
the event that a retail company becomes insolvent.

Consumer complaints resolution system

21
The Government expects everyone (including potential consumers and owners and occupiers of
land) to have access to a free, independent system for resolving complaints about electricity
distributors (including Transpower) and electricity retailers, whether or not they have a consumer
contract with the retailer or distribution company.

22
The Government expects the Electricity Commission, in consultation with the Ministry of
Consumer Affairs, to ensure a system is in place that meets the Government’s expectations and
includes the following features:

• a code of practice for electricity distributors and electricity retailers setting minimum
standards of conduct
• membership by all distributors (including Transpower) and retailers
• robust internal complaints-handling processes within all member companies
• an independent, external, complaints resolution scheme that meets standard benchmarks,
such as accessibility, independence, fairness, accountability, efficiency and effectiveness
• self-funding by the industry, and
• compensation where appropriate.

23
The Government supports the existing Electricity Complaints Commission Scheme and the
associated Electricity Consumer Code of Practice. However, not all retailers and distribution
companies have joined the scheme and the scheme’s coverage falls short of the expectations set
out above.

24
The Government therefore expects that the Electricity Commission will encourage the industry to
develop this scheme further in a way that ensures it is consistent with the Government’s
expectations. If the industry is unable to provide an acceptable scheme, the Commission should
recommend regulations to introduce a statutory scheme.

Electricity efficiency

25
The Electricity Commission has as a key goal the efficient provision and use of electricity.
Electricity efficiency and demand side management help reduce demand for electricity, thereby
reducing pressure on prices, scarce resources and the environment. The Commission should
ensure it gives full consideration to the contribution of the demand side as well as the supply side
in meeting the Government’s electricity objectives.

26
As part of its research and information activities, the Commission, in conjunction with the Energy
Efficiency and Conservation Authority (EECA), should undertake a comprehensive review of the
potential of electricity efficiency to contribute cost effectively to achievement of the Government’s
electricity objectives, including estimating the level of investment required to realise this potential.

27
The Commission should also put in place arrangements and programmes to promote efficiency in
the following components of the electricity sector:

Generation

28
Hydro, thermal and other fuels resources should be used efficiently in the generation of
electricity. Disclosure of information, such as on hydro spill, is expected to help avoid
unnecessary waste of resources.