Electricity Authority Launches New Consultation On Non-Discrimination Obligations

The Electricity Authority Te Mana Hiko (Authority) today launched a further consultation on certain aspects of the proposed non-discrimination obligations (NDOs), which are aimed at levelling the competitive playing field between the gentailers and independent third parties.

"We want to improve the confidence of anyone buying electricity risk management contracts, by requiring fairness, consistency and transparency in how generation is sold," Authority General Manager Wholesale and Supply, Hayden Glass, said.

"We also want to ensure that retailers aren’t squeezed by high wholesale prices and can profitably operate if they are at least as efficient as gentailers’ retail arms.

"Following this further technical consultation, we plan to finalise our decisions on the Level Playing Field measures, with any new obligations taking effect from 1 July."

Consultation on three technical matters

The first matter is draft guidance and additional proposed Code amendments around Retail Price Consistency Assessments (RPCAs), introduced in the October 2025 consultation.

The Authority is proposing that gentailers must submit a six-monthly RPCA to demonstrate they are not offering preferential prices to their own retail businesses.

"This increased transparency is intended to increase market confidence, which in turn can increase generation and investment, leading to more consumer choice and downward pressure on prices," Glass said.

The consultation also presents two options for how the NDOs should apply to "uncommitted capacity" or generation the gentailers would have to make available to others because it has not yet been contracted for sale. Consultation feedback raised several concerns about the wisdom and practicality of this concept.

The third matter being consulted on now is some Code changes that would specify in more detail what is required in the gentailers’ non-discrimination policies, as well as a proposal to require gentailers to carry out regular audits of their compliance with the NDOs.

Next steps

The NDOs are part of a range of Authority initiatives designed to support market investment and competition in the wholesale and retail markets.

The consultation closes on 19 March with final decisions targeted for May. The RPCA implementation date remains 1 July 2026.

Find out more about the consultation (https://www.ea.govt.nz/projects/all/energy-competition-task-force/consultation/non-discrimination-obligations-rpca-uncommitted-capacity-and-other-matters/)

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