The Energy Competition Task Force has announced its preferred approach to enhance competition in New Zealand's electricity market by implementing non-discrimination measures. These measures aim to level the playing field between the four major gentailers—Genesis, Contact, Meridian, and Mercury—and independent generators and retailers.

The proposed measures would prevent gentailers from favoring their retail divisions when it comes to hedge contracts. Instead, they would be required to offer these contracts to all market participants on equal terms, ensuring transparency regarding pricing and volumes. This initiative is expected to foster competition, ultimately benefiting consumers with lower prices and more options.

Anna Kominik, Chair of the Electricity Authority and Task Force member, emphasized that these non-discrimination obligations are the most effective and timely solution to improve competition. The Task Force believes that swift implementation will encourage new entrants into the market, support innovation, and exert downward pressure on prices.

The Task Force is currently seeking feedback on its proposals through an eight-week consultation period, which will conclude on April 23. The initiative is part of a broader effort to enhance the performance of the electricity market and promote investment in renewable energy.

Dr. John Small, Chair of the Commerce Commission and Task Force member, highlighted that the proposed measures are designed to complement other initiatives aimed at improving consumer outcomes, including investment in renewable energy and innovation.

The Task Force is considering a progressive approach to non-discrimination obligations, which may evolve into more stringent regulations if necessary. The first step involves principles-based requirements, followed by detailed obligations, and potentially leading to regulated market trading for gentailer-supplied hedge contracts.