Source: New Zealand Government

The Government has appointed independent experts to review the performance of the electricity markets, Energy Minister Simon Watts and Associate Energy Minister Shane Jones say.

“The power crisis we experienced last winter highlighted how important affordable and secure electricity at internationally competitive prices is to the economic growth and prosperity of Kiwi households and businesses alike,” Mr Watts says.

“Energy security is a top priority for the Coalition Government as the economy electrifies and we work to double New Zealand’s renewable electricity generation. We expect to see market-led approaches to energy security throughout the transition, and we want to make sure the markets are performing effectively.

“This review will help ensure our regulatory settings can deliver on the long-term interests of consumers, keep prices down for Kiwis and keep the lights on.

“From the review’s inception, we were clear that we needed experts capable of bringing a fresh perspective to the complex challenges facing our markets. Those chosen are well-qualified with significant expertise in international electricity market design, risk management, competition policy and financial instruments.”

Mr Jones says New Zealand cannot afford another winter like 2024 in which businesses shut down, manufacturing ground to a halt, and cheap coal was brought in from overseas kept the lights on.

“If we are to grow the economy, we cannot allow a shortage of power to stunt that growth. We are a resourceful nation and our businesses have to be able to continue without worrying whether they can afford the power bill or having to choose between shutting down production or keeping staff.”

Global consultancy Frontier Economics will be the lead reviewer, addressing the seven questions specified in the review’s terms of reference.

The two peer review roles will be taken on by a team of international experts in energy economics with particular expertise in market design. The peer reviewers will provide an added layer of quality assurance and accuracy to ensure the review reports are robust and reliable.

New Zealand-based Concept Consulting will act as New Zealand expert advisor, responsible for ensuring Frontier Economics has solid awareness and understanding of the New Zealand context.

“Collectively, these independent experts bring a wealth of experience, insight, and the fresh perspectives needed for this type of review,” Mr Watts says.

Ministers expect the review’s final reports to be delivered by the end of June, after which Cabinet will make decisions on next steps.

MIL OSI

Source: New Zealand Government

Kāinga Ora is introducing clearer consequences for state house tenants who skip rent payments, build up debt, then refuse to work with the social housing provider to encourage better responsibility, Associate Housing Minister Tama Potaka says.

In March 2024, Ministers instructed Kāinga Ora to end its Sustaining Tenancies Framework which had allowed tenants to stay living in a KO home no matter how threatening or disruptive their behaviour, or how huge their debt from unpaid rent.

“We’ve seen success so far that taking action against disruptive tenants is leading to improved behaviour. Now we want to keep up that momentum when it comes to encouraging people to responsibly pay their rent,” Mr Potaka says.

“Under the previous Government, tenants were allowed to build up so much debt that it has become unrealistic for them to repay. Between 2017 and 2023, the total debt owed to Kāinga Ora by its tenants increased from $1 million to $21 million.

“This isn’t in anyone’s best interests – not for tenants or taxpayers. The new rent debt policy being introduced will change that,” Mr Potaka says.

“Tenants who fall behind in their rent will receive support from Kāinga Ora to get back on track, but if they don’t make a genuine effort to repay what they owe, they will be putting their tenancy at risk. This will provide clear incentive to tenants who are not currently meeting their obligations to change their behaviour and speed up repayment.

“Since we came into office, Kāinga Ora has already begun working harder with tenants to reduce their rent debt. This has resulted in total rent debt falling from $21.6 million in January 2024 to $16.1 million at the same time this year.

Mr Potaka said the decision by the Board of Kāinga Ora to help some tenants with significant rent debt get on top of their debt faster by reducing the amount they owe down to 12 weeks’ worth of rent is a pragmatic one.

“Kāinga Ora is bringing the rent debt down to a level that is more realistic for the tenant to repay in full, with the right payment arrangement in place. Kainga Ora will only do this for tenants who had more than 12 weeks’ worth of rent debt at the beginning of February 2025 who are consistently paying their rent and making reasonable payments to reduce what they owe. 

“All tenants whose rent debt is reduced will still have a significant amount to repay – and they will have a strong incentive to do this under the new policy.

“While most Kāinga Ora tenants are great tenants who respect the properties, are good neighbours and pay their rent on time, some need a little more tautoko and encouragement to do the right thing.” 

MIL OSI