Coalition Government launches investigation into market's performance.
Energy Minister Simeon Brown and Associate Energy Minister Shane Jones have announced the terms of reference for a review of the electricity market. Initiated during last winter's power crisis, the review aims to assess whether current regulations support economic growth, access to affordable and reliable electricity, and internationally competitive prices.
The investigation will focus on several key areas, including investment and access to capital, market rules and competition, and market performance monitoring. The review is expected to ensure a secure and affordable electricity supply by incentivizing timely investment, achieving efficient outcomes, promoting effective competition, and regulating markets in a predictable manner.
According to Minister Brown, the past winter highlighted the sector's challenges, emphasizing the need for effective regulatory settings that prioritize New Zealanders' interests. The review is part of the Government's efforts to improve energy security and keep electricity prices down for Kiwis. The findings are expected early next year, with the goal of creating an electricity sector that serves consumers' long-term interests.
The review will provide valuable insights into the performance of the electricity market and inform future policy decisions aimed at ensuring a reliable, affordable, and sustainable energy supply for New Zealand.