Energy Minister Simon Watts is welcoming the Electricity Authority's new rule on energy pricing. Photo: RNZ / Samuel Rillstone
Energy Minister Simon Watts is welcoming a new rule being brought in by the Electricity Authority, saying it will level the playing field between big and small power companies.
The new rule requires generators to offer the same price to all retailers and cannot offer discounts, including to themselves.
The authority announced a range of other rule changes last month.
The change was recommended by the Energy Competition Task Force set up in August 2024, and will be consulted on later this year.
Watts said the rule would encourage investment in new generation.
"Currently the large power companies can cross subsidise themselves because they both produce energy and sell it," he said.
"This [change] will level the playing field by giving smaller companies a better chance to compete and will mean Kiwi consumers have more choices."
He said the government remained deeply concerned about lack of affordability and competition in the electricity market.
"I expect the authority to deliver more efficient, competitive, and reliable electricity market," he said.
"Looking ahead, I have also received the final report of the electricity markets performance review, which looked at how we can improve the market to support economic growth and ensure access to reliable and affordable electricity for consumers.
"I will have more to say on the review's outcomes in due course, once Cabinet has given careful consideration to its findings and recommendations."
The Electricity Authority has also launched an investigation into energy pricing, contract availability and business conduct in the electricity and gas markets, working closely with the Commerce Commission.
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