MBIE opens consultation on ways to improve efficiency of our electricity networks

Network efficiency needed for more affordable power, Govt says(external link) — beehive.govt.nz

There are 28 Electricity Distribution Businesses (EDBs) in New Zealand, responsible for local infrastructure like power lines, poles and substations. Some EDBs are subject to price-quality regulation in which the Commerce Commission sets their maximum revenue and minimum service standards.

Supporting a reliable and affordable electricity system is one of the Government’s top priorities, which is why MBIE is asking for feedback on potential reforms to the regulatory framework that underpins this important sector.

The discussion document released today sets out options to strengthen the performance of EDBs so they can provide reliable and affordable services to consumers while supporting increased electrification and innovation.

MBIE is seeking views on:

• Collaboration and standardisation: Whether there are changes the Government could make to encourage greater collaboration between EDBs and more consistent processes, pricing approaches and customer interfaces. This is intended to help realise efficiencies of scale without requiring structural consolidation.
• More responsive economic regulation: Options to strengthen the Commerce Commission’s regulatory toolkit, including improved performance monitoring and benchmarking, expanded information-gathering powers, additional regulatory tools between information disclosure and price-quality regulation, more flexible regulatory approaches, and easier pathways for applying stronger regulation where warranted.
• Stronger governance and accountability: Options to clarify EDB objectives, improve oversight of non-core investments, strengthen governance capability, and ensure ownership arrangements remain fit for purpose as investment needs and sector complexity increase.

Submissions can be made via the MBIE website here:

Consultation on options to improve the efficiency of electricity distribution businesses