Spotlight on EV charging and similar technologies

The Commerce Commission and Electricity Authority have launched a joint project to shine the spotlight on emerging contestable services such as electric vehicle charging.

The two will assess how new technologies and business models emerging in the electricity sector may benefit consumers in the future.

Commission deputy chair Sue Begg says it and the Electricity Authority have a shared focus on ensuring electricity markets are working well and that the regulatory environment supports the best possible outcomes for consumers.

“New technologies such as network batteries, solar panels and electric vehicle chargers present new opportunities for the sector,” Begg says.

“We want to better understand lines companies’ incentives to invest in these new technologies and the impact these investments will have on consumers in the long term.

“Our aim is to ensure our collective regulatory tools are appropriate and flexible enough to incentivise innovation and promote competition in emerging services.”

Emerging technologies will enable new business models and give consumers greater options and choice over how they use energy (and how much).

These technologies, business models, and consumer behaviours are interrelated with policy and regulations that affect market structure (eg, separation between electricity generation/retailing, distribution/transmission and other energy-related services), conduct (eg, pricing and investing), and performance (eg, profitability).

“The ‘trio’ of emerging technologies, new business models and changing consumer behaviour has the potential to benefit consumers in different ways but also presents challenges to how we regulate lines services under the Electricity Industry Act 2010 and the Commerce Act 1986,” the commission says.

“This work will help support how we both exercise our regulatory powers in this changing environment.”

Feedback on the proposed focus and approach closes on April 12.

Visit www.comcom.govt.nz for the project terms of reference.