What is the Commission's role in the electricity markets?

Electricity is a unique commodity that must be produced at the exact moment and in the precise quantities that consumers demand it. As the industry regulator the Commission oversees the Electricity Governance Rules. The rules are designed to ensure the balance between supply and demand is maintained with the reliability and power quality that the markets require.

How do the markets work?

As a result of market reforms over a decade ago, New Zealand has created wholesale and retail markets for electricity giving consumers a choice of power suppliers. Electricity retailers also now buy electricity in a competitive wholesale market. These markets are expected to deliver to the electricity sector downward pressure on costs and prices, emphasis on customer choice and service, and technological innovation.

How does the Commission ensure the rules are appropriate for the markets?

The Commission consults extensively with stakeholders and uses its influence to seek mutual solutions before proposing regulation. Good communication with stakeholders, at the consultation stage and when regulations are promulgated, is an essential part of the process. It is Commission and government policy that the Commission remains open to hearing a range of stakeholders views. It also draws on advice from a range of advisory groups.

More about rules and regulations

More about retail markets

More about wholesale markets