Posted 18 December 2009

The Electricity Commission (Commission) has been progressing the development of model domestic retail contracts, and a significant body of work has been undertaken to date by the Commission and by other industry groups in previous forums.  

In mid-2009, the project reached a point where it was timely to consider whether the development of model contracts is the most appropriate approach to meeting the Commission’s policy objectives and the desired market outcomes for this aspect of its retail work programme. 

The Commission is mindful that there are other options to the completion of a detailed model domestic contract, such as promulgating guidelines for good contracting, establishing minimum terms and conditions and providing for fully regulated benchmark contracts.

The Commission therefore considered the issues and drivers behind model domestic retail contracts, and the options for meeting its objectives in this area.  It has developed a set of reasonable consumer expectations for domestic electricity customers, and has identified its preferred approach to meeting these.  The Commission has also prepared a draft set of contracting guidelines and suggested minimum terms and conditions for the purposes of consultation, consistent with its preferred approach.

Consultation paper

• Consultation paper pdf [389 KB]

• Appendix 1 (in Word version) doc [83 KB]

• Appendix 2 pdf [88 KB]

• Appendix 3 pdf [182 KB]

The purpose of this paper is to consult on the Commission’s proposals for the following aspects of the domestic retail contracting arrangements:

• the draft set of Reasonable Consumer Expectations for domestic consumers;
• the proposed package for progressing domestic retail contracting arrangements; and
• the initial draft set of contracting guidelines and minimum terms and conditions.
  

The Commission is seeking stakeholder feedback as input to determining the appropriate next steps in progressing this work.

Mindful of recent Government announcements following the Ministerial Review of the electricity sector, the Commission has discussed its proposed approach with officials from the Ministry for Economic Development and Ministry of Consumer Affairs.  They have expressed support for the principle of moving away from a model contract towards principles and minimum terms and conditions.  They are keen for momentum to continue on this work, and see a need for industry to continue to fully engage with the Commission on these matters.

Submissions

The Commission’s preference is to receive submissions in electronic format (Microsoft Word). It is not necessary to send hard copies of submissions to the Commission, unless it is not possible to do so electronically.  Submissions in electronic form should be emailed to submissions@electricitycommission.govt.nz with Consultation Paper—Approach to domestic retail contracting arrangements – issues and options discussion in the subject line. 

If submitters do not wish to send their submission electronically, they should post one hard copy of their submission to the address below.

Lisa DuFall
Electricity Commission
Level 7, ASB Bank Tower
2 Hunter Street
PO Box 10041
Wellington 6143
Tel: 0-4-460 8860
Fax: 0-4-460 8879

Submissions should be received by 4pm on 19 February 2010.  Please note that late submissions are unlikely to be considered.

The Commission will acknowledge receipt of all submissions electronically. Please contact Lisa DuFall if you do not receive electronic acknowledgement of your submission within two business days.

If possible, submissions should be provided in the format shown in Appendix 1. Your submission is likely to be made available to the general public on the Commission’s website. Submitters should indicate any documents attached, in support of the submission, in a covering letter and clearly indicate any information that is provided to the Commission on a confidential basis. However, all information provided to the Commission is subject to the Official Information Act 1982.