The Energy Competition Task Force (Task Force) has announced it will continue its work in 2026 with a refreshed set of priorities and a greater focus on inter-agency collaboration to address competition issues in the electricity market.

Task Force member and Electricity Authority Acting Chair Erik Westergaard says the Task Force’s delivery across eight initiatives since August 2024 has helped improve the performance of New Zealand’s electricity market, adding that engagement with stakeholders earlier in 2026 has been equally important in shaping the next phase of work.

"Feedback was clear about where collaborative action would make the biggest difference, and that has helped us focus on the areas where coordinated effort across agencies can deliver real improvements for competition and consumers."

The Task Force has identified further work that will benefit from the joint expertise and powers of the Electricity Authority, the Commerce Commission and MBIE working together. Its new collaboration priorities for 2026 are:

- Improving network performance by harnessing alternatives such as local battery storage and flexibility services to manage demand and avoid the need for transmission investments at grid exit points (GXPs)

- Addressing lines company pricing and competition issues, including connection challenges

- Continued work on level playing field measures - part of the Task Force’s original programme of work in 2024 - with final decisions due next month.

The Task Force has also signalled it will maintain a watching brief on barriers to the development of flexibility services, including whether barriers to competition arise from firms exercising market power. Task Force members may act where needed, either jointly or individually.

Task Force member and Commerce Commission Chair John Small says New Zealanders can be confident that the organisations regulating the electricity sector are aligned and working in their interests.

"The inter-agency collaboration and alignment established through the Task Force has already enabled some of the changes needed to address energy market competition issues, ultimately benefiting consumers.

"But there is still more to do. Uncertainty in the hedge market, in part driven by increased electrification, loss of domestic gas production and reliance on renewable energy, means competition remains a critical focus. At the same time, lifting network performance and tackling lines-pricing issues are vital to unlocking more value for consumers.

"Working towards a new set of priorities means we can continue to deliver benefits for competition, consumer choice, affordability and a secure supply of electricity."

Since its establishment in August 2024, the Task Force has delivered eight initiatives to strengthen the performance of New Zealand’s electricity market.

Notes:

Background

The Energy Competition Task Force was established in August 2024 by the Electricity Authority Te Mana Hiko (Authority) and Commerce Commission Te Komihana Tauhokohoko (Commission), with the Ministry of Business, Innovation & Employment Hīkina Whakatutuki (MBIE) as an observer.

The Task Force set out to investigate ways to improve the performance of the electricity market. To date the Task Force’s work programme has focused on two overarching outcomes: enabling new generators and independent retailers to enter and better compete in the market, and providing more options for consumers.

The work programme and packages of measures can be viewed here - https://www.ea.govt.nz/projects/all/energy-competition-task-force/. This work is complementary to the work undertaken separately by the Authority and the Commission as they deliver on their broader strategies and work plans.

About GXPs

GXPs are the substations where electricity is transferred from Transpower’s national grid to local distribution networks.

About level playing field measures

Level playing field measures are mandatory non-discrimination rules that stop the big gentailers giving their own retail arms better access to hedge contracts, ensuring independent retailers and generators can compete on equal terms.

About flexibility services

Flexibility services draw on demand-side flexibility from consumers and businesses, as well as distributed energy resources - such as home and commercial battery systems, controllable EV chargers, water heaters, and flexible industrial and commercial loads - to provide support services to distribution networks, the transmission grid and energy markets. This can avoid the need to build more infrastructure, lowering overall costs for consumers, while also supporting security of supply and reducing the need for some additional generation or reserve capacity.

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