✨ Electricity Retail Competition
3630
NEW ZEALAND GAZETTE, No. 123
30 OCTOBER 2006
Retail competition
114 The Government considers that competition between electricity retailers
should, over time, help ensure that retailing costs are minimised, service
quality is improved and downward pressure is placed on generation costs.
Most consumers, especially in larger centres, have a choice of retailers, and
the processes for consumers to change suppliers have steadily improved.
However, the Government considers that retail competition is not as vigorous
as it could be, and looks to the Electricity Commission to promote and facilitate
retail competition, and to make recommendations to the Minister of Energy on
any steps the Government should take, including regulating, to facilitate retail
competition.
115 The Electricity Act 1992 provides a number of regulation-making powers
relating to retail competition.
Terms and conditions for the use of lines and related services by competing retailers
116 The diversity and complexity of the terms and conditions offered by different
lines companies for use of their lines is often cited as a significant barrier to
expansion of retail competition. The Government considers that greater
standardisation and simplification of tariff schedules and contractual
arrangements will facilitate market entry by retailers.
The reconciliation of, and payment for, distribution line losses
117 Current methods for calculating, reconciling and arranging payment for
distribution line losses by competing retailers are also often raised as a
concern by retailers. The Commission should recommend regulations if it
considers this is a material issue such that rules and regulations would
facilitate more efficient outcomes and remove impediments to the effective
functioning of the retail market.
Terms and conditions for access to electricity meters by retailers
118 Retailers must have ready and efficiently-priced access to end-use electricity
meters in order to provide retail services. This is especially the case when
retailers enter new market areas and/or customers wish to change retailers.
By and large, access to meters does not appear to constitute a pervasive
barrier to retail competition. However, there are regions where access has
proven difficult and contentious, and the Commission is invited to consider
whether regulations should be made to facilitate retail competition.
Arrangements to enable consumers to switch retail suppliers
119 The Electricity Governance Rules 2003 include detailed processes and
procedures to ensure consumers are able to switch retailers with a minimum
of inconvenience and cost. These rules are currently in operation, but the
Commission should keep them under review, and make recommendations for
improvement if required.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 123
Gazette.govt.nz —
NZ Gazette 2006, No 123
✨ LLM interpretation of page content
🏛️ Retail competition in electricity
🏛️ Governance & Central AdministrationElectricity, Retail Competition, Retailers, Service Quality, Generation Costs
🏛️ Regulation-making powers under Electricity Act 1992
🏛️ Governance & Central AdministrationElectricity Act 1992, Regulation-making Powers, Retail Competition
🏛️ Standardisation of tariff schedules and contractual arrangements
🏛️ Governance & Central AdministrationTariff Schedules, Contractual Arrangements, Retail Competition, Lines Companies
🏛️ Reconciliation and payment for distribution line losses
🏛️ Governance & Central AdministrationDistribution Line Losses, Reconciliation, Payment, Retail Competition
🏛️ Access to electricity meters by retailers
🏛️ Governance & Central AdministrationElectricity Meters, Retailers, Market Entry, Retail Competition
🏛️ Consumer switching of retail suppliers
🏛️ Governance & Central AdministrationConsumer Switching, Retail Suppliers, Electricity Governance Rules 2003