Thursday, February 5, 2026

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Government to toughen electricity market rules

Electricity Authority gets more powers

The Government plans to strengthen the Electricity Authority, increasing penalties and enforcement powers in a bid to ease pressure on household power bills and improve competition in the electricity market.

Energy Minister Simon Watts said legislation would be amended to give the regulator greater authority to act against rule-breaking power companies, arguing the current system does not go far enough to protect consumers.

“Kiwis are feeling the pressure of high power bills,” Watts said, adding that the Government is moving quickly to ensure electricity companies “play by the rules”.

Under the proposed changes to the Electricity Industry Act, maximum penalties for serious breaches would rise from $2 million to as much as $10 million, or three times the commercial gain, or up to 10% of a company’s turnover. The Electricity Authority would also gain the power to issue instant infringement fines of up to $2,000 for minor but repeated breaches.

The reforms would also improve the Authority’s ability to update market rules and monitor behaviour across the sector, with the Government saying this will strengthen competition and better protect consumers.

Higher penalties, however, are not expected to take effect until 2027, while the new infringement system would begin in 2026. The enforcement tools would align the Authority more closely with those already available to the Commerce Commission.

Watts said the changes would ensure “real consequences” for companies that attempt to distort the market or take advantage of customers, and would help restore confidence that households and businesses are not being overcharged.

The reforms come as the Government continues broader work to address high electricity prices, manage dry-year risks, and ensure long-term energy security. Since announcing its Energy Package in October, the Government has begun the first stage of procuring an LNG facility to improve security of supply, assessed new generation projects through the Fast Track Approvals process, and started developing a new regulatory framework aimed at preventing dry-year shortages that can drive up prices.

Image credit: Roman Petrov

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19 COMMENTS

    • Look at MSM
      There’s always a storm coming
      That sometimes may or may not arrive
      But these are the same people who sold Us covid
      Who without such would not have been possible
      Government funded the shadow of the beast
      And Christchurch
      High Popalorum and Low Popahirum
      Skinning you from different directions
      Lies distortion and spin
      Who have blood on their hands
      Least We forget at Our peril

  1. This is just nonsense. Re-nationalise the industry. Re-nationalise all essential infrastructure. None of it should be in the hands of shareholders.
    Prior to Roger Douglas electricity bills arrived every two months and were so low they were not a burden on the citizens of New Zealand. We had first class roads and cheap rail travel to everywhere. Water, which we have in abundance, was free.
    Shareholder greed will eventually strangle every home and business in the country.
    Also, can someone tell me why, when this country was taken from bush and scrub to first world status in less than one hundred years by fewer than two million settlers, we now cannot do anything unless we bring in infinity third world people to ‘help’ us?

  2. “Kiwis are feeling the pressure of high power bills”
    Another good example of where governments lead You in trying to pin the tail on the donkey
    In the dark
    Screw it up at every opportunity never left to waste
    Crisis actors who create crises then act out real life parts in the crises they have created
    Perennial revolving doors damage control
    The blind leading the blind
    I was talking to one guy and said talking about the scandalous price of power “imagine having four daughters?”
    He said “I have”
    Anyone who has had a daughter knows what you’re up against – but four?
    And are ordinary car owners being rail roaded and hood winked into subsidizing the electricity prices pertaining to the EV transition fairy tale bedside story in providing a crutch for this ailing cripple at their expense?

  3. How does Watts reconcile….

    “help restore confidence that households and businesses are not being overcharged”

    with

    “Damp squib energy reforms reject 8 of 10 recommendations
    The Government’s limited energy package doubles down on fossil fuels after a major market review recommends privatising the gentailers”

    Why are Luxon, Peters, and Seymour standing idly by whilst the dishonest Watts and Willis protect the predominantly Australian: energy, grocery, insurance, and banking cartels?

    Luxon promised us he would police the cartels.

    Right about the time he promised to f#%k sorry fix the joint.

  4. So i assume these higher penalties will eventually be passed on to the consumer? Nationalise these stretegic assets like electricity now

    • Kinda like paying short-notice electricity rate increases within a week of a vaccinated individual lacking cognitive critical thinking via ‘Covid Brain Fog’ who went ahead and removed the bolts that held a transmission high-tension electrical tower in place, and then causing the tower to topple, cutting off power to thousands up north, and taking 2 weeks to restore the same at the customer’s expense.
      And when you ask where underground electrical lines, fiber cables. water, sewer and gas lines are located, NO COUNCIL WILL GIVE YOU THE ANSWER BECAUSE THEY DO NOT KNOW THEMSELVES what is contained in their jurisdictions!
      Instead, you get referred to an international globalist-styled company called ‘Before-U-Dig’ where one has to sign-up for an account, with the info shared to third parties, and has T&C’s you must comply with.
      Then, you MAY be charged money for that information / chart / map, and they can even send out a person at your expense to ‘watch over’ where you might dig, charging a fee per hour, of course. They are not up-front on what they will charge!!!
      Every home, business owner, and every property developer should be able to access this info from their local City & Regional Councils, but it’s not available.
      How can a Council provide infrastructure advice and improvements when it doesn’t even know where these underground utilities are?
      BUT- YOU WILL BE CHARGED FOR ONGOING DAMAGE FROM DIGGING AND HITTING THESE UNDERGROUND ‘ASSETS’ despite calling for help pre-digging / drilling from ther Councils and their ‘Duty Builders’ who are ignorant of these ramifications for the homeowner, business owner, or rural projects.
      And you can bet that the Ratepayers and Power Company Customers will be charged for these FUBARS…!

  5. If we triple taxes and invest trillions of dollars of taxpayers money
    into windmills, remove and ban all internal-combustion engines, destroy all evil
    methane-belching cows and ban farming, force compulsary 15-minute city living
    on 95% of the population, enforce digital implants, big-pharma injection programs and insect diets,
    and criminalize all outdoor travel except for the corporate rulers – Then we can all be happy and safe….

  6. BEWARE. Quiet Surveillance Law Push Threatens Free Speech and Privacy (This from the New Conservatives and the Free Speech Union). I’ve included a link at the bottom so you can make a submission objecting if you wish to.Its a simple process and I’ve already voiced my objection.

    As we all switched off over the holidays, the Government was pushing through legislation that would dramatically expand surveillance powers. We only just saw this tonight, thanks to the Free Speech Union, so the information comes from them. Head over to the Parliament website to make your submission. Unbelievably, we have until midnight 14 January – yes, tomorrow!! Telecommunications and Other Matters Amendment Bill Submission – New Zealand Parliament

    This proposal is not just about enforcement or security. It strikes directly at two basic rights protected under the New Zealand Bill of Rights Act (NZBORA):

    – the right to freedom of expression, and

    – the right to be free from unreasonable search and surveillance.

    Under the proposed changes, the Government would gain sweeping new powers to:

    – Expand surveillance over overseas online platforms

    – Create an administrative “kill switch” to shut down digital services

    – Force changes that weaken encryption

    – Bypass court oversight if enforcement is considered “impractical”

    These powers threaten free speech at its core.

    https://www3.parliament.nz/en/ECommitteeSubmission/54SCEDSI_SCF_2A142C71-BABB-45EB-38EB-08DE1017E271/CreateSubmission

  7. This isn’t regulation its a basic policing action, that is to say, a JOKE. Proper regulation would see prices capped in some instances, for example poor and elderly, or pegged to inflation, inflationary pressures taken into consideration when pricing and a proper regulatory watchdog set up to oversee prices management and increases/decreases.

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