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Coordinated approach needed

Press Release

8 March 2017

Coordinated approach needed to electricity distribution pricing, says ERANZ

The electricity sector needs a coordinated, evidence-based approach to distribution pricing, the Chief Executive of the Electricity Retailers Association of NZ (ERANZ), Jenny Cameron, told the energy sector's Downstream forum in Auckland yesterday.

She said a large part of ERANZ’s work this year would be in trying to support a smooth roll-out of any new pricing “in a way that doesn’t confuse, frustrate, or mislead customers”.

“We need a coordinated, evidence-based approach, and that means good communication between electricity distributions boards and retailers.

“Consultation needs to be genuine and constructive. I know of some areas that are already doing trials around pricing between EDBs and retailers, or have plans to do so.”

Ms Cameron said ERANZ was also focused on how impacts for vulnerable and medically dependent customers would be managed because there were risks in any new pricing model.

“Retailers’ ability to compete to offer services to different customer groups has to be allowed to develop – and it is, and it will keep doing so. A retailer must be able to offer packages to customers to smooth impacts, bundle services, or the opposite, so the customer has the choice.”

She said access to data was an issue that needed to be carefully managed to balance the social and NZ Inc imperative, as well as the commercial and transactional considerations.

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“It is a tool and an enabler for the future energy market, yet customer rights must be protected.”

About ERANZ

The Electricity Retailers Association of New Zealand was established in August 2015 to represent the electricity retail industry on important sector-wide issues such as delivering value to stakeholders and consumers, and supporting the continued development of an open, competitive, sustainable and effective electricity market.


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