The Government has announced new electricity market rules aimed at stopping New Zealand’s four largest gentailers from using their market dominance to disadvantage smaller competitors, with Energy Minister Simeon Brown saying the changes will help deliver fairer power prices for households and businesses.
From July 1, Contact, Genesis, Mercury and Meridian will be barred from offering more favourable hedge contract arrangements to their own retail divisions than to independent retailers, a move designed to level the playing field in the wholesale electricity market. Smaller retailers rely on hedge contracts to manage the sharp price spikes that occur during peak demand periods, particularly in the morning and evening.
Under the new rules introduced by the Electricity Authority, gentailers will be required to treat rival retailers the same way as their own retail operations unless there is an objective reason not to. They will also have to submit annual compliance plans, certify they are following the rules, and prove every six months that their retail pricing reflects the genuine expected cost of electricity so that equally efficient competitors can remain viable in the market.
The Government also plans to significantly increase penalties for serious breaches, subject to legislation passing. Maximum fines could rise from $2 million to as much as $10 million, three times the commercial gain, or 10 per cent of a company’s turnover — whichever is highest — from 2027.
Brown said stronger competition would encourage greater investment and innovation across the electricity sector while helping improve affordability and choice for consumers. He said the changes formed part of a broader package of energy reforms, including fast-track consenting for renewable energy projects, support for energy security initiatives, plans for an LNG import facility, expanded rooftop solar measures and work to improve electricity distribution performance.
Come here little piggy, have some lipstick.
Yeah, after they have already killed off or own/control those that are left. The corporate agenda rolls on.
Once again the govt are deflecting the rise in energy costs. NZ govt are responsible for saddling gentailers and retailers alike with Kyoto Protocol COP23 green energy tax we now all know was floated on implausable climate catastrophy prediction and projection.
Cut the crap NZ govt by exiting the globalist fake green agenda model; designed to keep us in perpetual slavery through taxation without representation.
Half hearted regulation of a chronically under regulated sector. NZ is one of the WORST nations in the world, when it comes to energy regulation in general and we can see it in exorbitant pricing, that see’s people sell up and head to the airport.
They are inefficient cartels with a monopoly just like our councils the management at the top everywhere in this country needs an urgent enema.
The party political system needs to change – until that happens nothing changes.
Fkn decades of fraudulent scamming and slimy corporate-monopoly price-gouging and profiteering ignored and secretly encouraged by under-the-table scumbag establishment politicians and all of a sudden these foul greasy wasp-nesters are “against” it …. Huh? What’s suddenly changed then?? Oh! That’s right! It’s an election year! Disingenuous fkn two-faced weasels…