Electricity retailers must improve transparency in their pricing practices

The Electricity Authority encourages electricity retailers to improve transparency in their pricing practices and shares concerns raised by the Commerce Commission regarding GST-exclusive pricing of bundled energy and broadband services.?

We have published the Consumer Care Obligations (Obligations), which will mandate key protections for residential electricity consumers. The Obligations will apply to all electricity retailers who sell to residential consumers.?

To ensure consumers understand what they are paying for, it’s crucial electricity retailers provide clear and transparent pricing for their services.?

We are committed to empowering consumers to have control over their energy choices and ensuring key protections are in place, supporting consumers to access the best plan for their needs.??

Alongside the Commerce Commission’s work to improve pricing and market practices by telecommunications providers supplying bundled energy and broadband services, the Obligations will ensure any fees electricity retailers charge on top of prices are reasonable and cost reflective. This protection will apply from 1 January 2025.??

The remaining protections under the Obligations will come into effect on 1 April 2025 and will include requirements for retailers to provide new customers, and customers wanting to change plans, with information that helps them choose the best plan for their household.??

Protections will also be in place to ensure electricity retailers proactively and effectively support any customers who may be facing payment difficulties.?

The Authority has work underway to support consumers to compare and switch electricity plans, which will further ensure consumers can make informed decisions about their electricity usage.?

Regulation by the Electricity Authority and the Commerce Commission??

• The Electricity Authority and the Commerce Commission share common interests in relation to their respective statutory functions.??

• The Authority is responsible for overseeing and regulating the electricity industry in New Zealand, under the Electricity Industry Act 2010.??

• The Commerce Commission has statutory functions under the Commerce Act 1986 and other statutes including the Fair Trading Act 1986 and the Telecommunications Act 2001.??

• The Commission published guidelines last year under the Telecommunications Act to telecommunication providers who provide bundled electricity and broadband services.?
• The Authority published the Consumer Care Obligations today. The Obligations are rules power companies must follow. They are in place to protect consumers and ensure a consistent and supportive standard of service to all residential electricity consumers.