The Energy Competition Task Force has identified innovative strategies to give consumers greater control over their energy costs and to leverage the potential of rooftop solar and battery systems. The Electricity Authority is currently seeking public feedback on three proposed regulatory changes designed to promote competition, ensure reliable power supply, and enhance the efficiency of the electricity market for the long-term benefit of New Zealanders.

Two of the proposed changes focus on incentivizing consumers to supply electricity to the network during peak demand times, primarily through their solar and battery systems. The third proposal aims to make 'time-of-use' power plans, which reward consumers for using electricity during off-peak hours, available to a broader segment of the population.

According to Anna Kominik, Chair of the Electricity Authority and Task Force member, empowering consumers to actively participate in the electricity market can lead to increased energy resilience and reduced power costs over time. The current market structure relies heavily on a few large generators, but as more consumers adopt solar and battery systems, they can contribute significantly to the electricity supply.

The proposals include: 1) Consumer-supply rebates from distributors, where lines companies would provide rebates when consumers supply energy into congested areas of the network; 2) Time-varying retail pricing for consumption, requiring large electricity retailers to offer at least one time-of-use pricing plan to all customers; and 3) Time-varying retail pricing for supply, mandating large retailers to offer at least one time-varying rate for purchasing electricity from consumers.

Dr. John Small, Chair of the Commerce Commission and Task Force member, emphasized that the initiative to increase the availability of time-of-use pricing plans would allow consumers to benefit from cheaper off-peak electricity rates. This shift in usage patterns can lead to lower overall electricity costs for consumers nationwide.

The Task Force is inviting feedback on these proposals during an eight-week consultation period, which will conclude on April 9th. An issues paper exploring the current pricing rules for distributed generation will also be released to support the consultation process.