Thursday, June 20, 2024

Commerce Commission to review power company disclosure

A targeted review of the information that New Zealand’s 29 regional electricity lines companies are required to disclose to the public is now underway, the Commerce Commission announced today.

“This information relates to the performance of regional electricity networks. It includes important data on pricing, future expenditure forecasts, outages and interruptions, and financial statements,” the Commission said in a statement.

“The Commission provides an analysis of this information each year to help the public understand how their regional electricity company is performing, individually and in comparison, and to track changes over time.”

The electricity sector was operating in a changing environment, particularly given the transition to a low carbon economy, the increasing impacts of climate change, and the challenges and opportunities posed by new technology, says Commerce Commission Associate Commissioner, Vhari McWha.

“Electricity lines companies will need to adapt to meet the challenges and opportunities of the future. As the electricity sector changes, our regulatory requirements may also need to change.”

“We are undertaking this review to ensure that sufficient information is available for stakeholders to assess electricity lines companies’ performance and continues to be available as the environment evolves. It is important that these companies have incentives to continue to invest and innovate to maintain reliable services, while responding to changing consumer preferences, technology, and other environmental factors, including climate change.”

Public consultation opened today with the release of a document outlining the process for the review, and the issues and potential changes that have already been identified.

Submissions are invited on other ways to improve the information disclosure requirements in four specific areas:

  • measures of quality of service provided by the 29 regional electricity lines companies;
  • decarbonisation, including the switch to low-carbon energy sources, the changing usage of electricity, and new technology and services;
  • asset management, including resilience and adaption to climate challenges;
  • alignment with other regulatory rules.

Submissions on the Process and Issues paper close on 20 April 2022. Following the consultation period, there will be a two-week period for cross-submissions, where parties may comment on other parties’ submissions. 

After considering submissions on the consultation paper, the Commission will also decide on the timing of different requirements and may extend some regulatory changes to electricity transmission services supplied by Transpower. 

Further information about the public consultation can be found on the Commission’s website.

Latest Articles