Electricity Authority consults on gentailer competition rules

The Electricity Authority is seeking feedback on proposed rule changes designed to level the playing field between New Zealand’s four large gentailers and independent electricity market participants.

The consultation targets Genesis, Contact, Meridian and Mercury with new non-discrimination obligations that would prevent their wholesale businesses from treating independent retailers differently from their own retail arms.

“The recommended new rules make sure all retailers are operating on a level playing field and help ensure accountability and transparency in the market,” says Electricity Authority Chair Anna Kominik.

The proposals have been developed by the Energy Competition Task Force and are designed to boost competition, build confidence in the wholesale market, and give New Zealanders better access to affordable electricity.

Six principles target market fairness

The consultation centres on six principles-based non-discrimination obligations covering supply terms, good faith trading, credit assessments, information access, confidentiality protection, and record-keeping requirements.

Under the proposed rules, gentailers would be required to price risk management contracts to ensure efficient independent retailers adopting reasonable risk management approaches are not prevented from operating profitably.

“The mandatory non-discrimination obligations we are consulting on would mean the gentailers’ wholesale businesses cannot treat independent retailers differently from their own retail arms,” Kominik says.

The Authority says it has revised parts of the proposed approach following earlier feedback, believing the updated version should be faster to implement and easier to enforce.

Commerce Commission Chair and Task Force member Dr John Small says the measures aim to encourage market entry and expansion.

“We want to give new players and investors the confidence to enter the market, encourage the expansion of existing independent generators and retailers and promote the development of innovative new products and services,” he says.

Implementation timeline set for early 2026

The Authority wants any changes in place early next year, with the non-discrimination obligations regime proposed for inclusion in the Electricity Industry Participation Code in early 2026.

The first gentailer reports on compliance with the new obligations would be due by July 1 2026, subject to consultation feedback.

The proposals follow public and industry consultation in February on options to improve competition, with the Authority announcing in August it would proceed with mandatory non-discrimination obligations.

“This is the latest of a series of pro-competition measures that are designed to help address concerns about the market from independent players, and future-proof the system for the benefit of all New Zealanders,” Kominik says.

The Energy Competition Task Force was established by the Commerce Commission and Electricity Authority in August 2024, with the Ministry of Business Innovation and Employment as observers, to investigate ways to improve electricity market performance.

The Task Force has been considering eight initiatives designed to encourage faster investment in new electricity generation, boost competition, and put downward pressure on prices.