Electricity retailers urge level playing field

5 August 2016

Electricity retailers urge level playing field for emerging technologies

Electricity retailers have urged the Commerce Commission to rethink their position on emerging technology in the electricity sector.

“New technologies and falling costs are creating opportunities for New Zealanders to add convenience and enhance their lifestyles – from smart fridges, washing machines and other appliances, to remote-controlled home energy management systems, solar panels, storage batteries, smart meters, and electric vehicles,” says Electricity Retailers’ Association of New Zealand (ERANZ) Chief Executive Jenny Cameron.

“These are all providing more choice and control for consumers in how they manage their use of electricity. At the same time, consumers who don’t want that technology should not be forced to cross-subsidise others who do, which is already happening under current regulatory settings.”

Ms Cameron says we need to ensure New Zealanders get the most from emerging technology. The energy sector, and how New Zealanders are using electricity, is changing quickly and it is imperative that the regulatory environment is fit for purpose and doesn’t create artificial roadblocks. Distributors, retailers and new entrants need to be able to fairly compete to provide the best possible outcomes for consumers.

Emerging technologies and their impact on the New Zealand energy environment is one of the issues under review in current Commerce Commission consultations. ERANZ yesterday made its submission on the Commerce Commission Draft Decision on Input Methodologies for Emerging Technologies.

“ERANZ is concerned that the opportunity for business of all kinds to develop, test and release new products, and the freedom of consumer choice, could be impaired by the current regulatory approach and leave New Zealanders behind.”

The submission urges the Commission to maintain the line between the monopoly and competitive parts of the electricity sector and restrict the ability to impose either a technology bottleneck or inefficient cross-subsidisation on customers who have no choice in the matter and who will bear the risk of new technology deployment.

“It also means a coordinated approach is required at this critical juncture to consider the future energy landscape and the regulatory framework to support it from all relevant agencies, including the Ministry for Business, Innovation and Employment and the Electricity Authority, before the market for these technologies is inadvertently distorted. ERANZ is keen to work with agencies in this process.”

The ERANZ submission, together with supporting reports drawing on international evidence, can be viewed shortly on the Commerce Commission website.

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