Source: New Zealand Government
Energy Minister Simon Watts says the Government is taking decisive action to ensure Kiwis get a fair deal on electricity by strengthening the Electricity Authority.
“Kiwis are feeling the pressure of high power bills. The Government is moving quickly to fix this by strengthening the Electricity Authority, which oversees the electricity market and makes sure power companies play by the rules,” Mr Watts says.
“The Government has agreed to amend the Electricity Industry Act to give the Electricity Authority real teeth, providing it with the tools it needs to maintain a fair and competitive market.”
The changes will:
- Increase penalties for serious rule-breaking from a maximum of $2 million to up to $10 million, or three times the commercial gain, or 10% of a company’s turnover.
- Introduce instant infringement fines (up to $2000) for more minor, repeated breaches.
- Improve the Authority’s ability to update rules and monitor the market, thereby boosting competition and protecting consumers.
Higher penalties will be in place in 2027, with the new infringement system starting in 2026. These tools match what the Commerce Commission already uses.
“These changes will mean power companies will face real consequences if they try to take advantage of customers or distort the market,” Mr Watts says.
“New Zealanders struggling with high power bills deserve an electricity market that works for them, not against them.
“A stronger, more effective regulator will help keep prices fair, encourage competition, and give families and businesses more confidence that they’re not being overcharged.”
The changes come at a crucial time for the energy system as the Government works to tackle high power prices, manage dry-year risk, and ensure the country has a reliable energy supply.
Since announcing the Energy Package in October, the Government has:
- Commenced the first stage of the procurement process for an LNG facility to provide New Zealand wither greater security of supply.
- Assessed new energy projects under the Fast Track Approvals process which will increase supply and unlock investment in new generation.
- Started work on a new regulatory framework to prevent dry-year shortages that drive up prices.
“These steps are about making sure New Zealand has the affordable, abundant, reliable energy our economy needs,” Mr Watts says.
“It’s critical to have strong leadership at the Electricity Authority to ensure it can support the market to deliver abundant and affordable energy.”
The Government has agreed to the appointment of new members to the Electricity Authority Board including:
- Erik Westergaard as Deputy Chair
- Anthony Baldwin
- Benjamin Bolot
- Murray Parrish
“These appointments bring significant experience across energy markets and industry reform. They will help ensure the Electricity Authority is well equipped to deliver better outcomes for consumers,” Mr Watts says.
“I’d also like to acknowledge and thank the outgoing Chair, Anna Kominik, and outgoing members Lana Stockman and Dr Cristiano Marantes for their service.
“With a stronger regulator, clearer rules, and more investment in energy security, we are laying the foundation for lower prices, more competition, and a more reliable electricity system.
“Our focus is simple: making sure the energy system works for New Zealand households, businesses, and industry.”
