Electricity Authority funding in 2026/27

Each year, the Electricity Authority Te Mana Hiko (Authority) consults on its levy funded appropriations to inform our funding request to the Minister for Energy and work programme for the next financial year.

Thank you to all who engaged in our 2026/27 Levy-funded appropriations consultation which closed in December 2025. Your feedback helped shape both our funding request and our priorities for the year ahead. Our upcoming Statement of performance expectations 2026/27 (published by 1 July 2026) will include our updated strategic framework and the five strategic priorities that have shaped our work programme.

Key points

• We are keeping our operating costs flat in 2026/27.
• We will absorb more than $3 million in cost pressures through efficiency initiatives, prioritisation and organisational improvements.
• A small funding increase has been approved to meet inflation‑linked contractual costs for third‑party service providers who run the electricity system and markets.
• These service providers account for around two‑thirds of our total costs, making these increases largely unavoidable.
• This funding will enable us to continue to deliver a priority work programme for 2026/27 focused on ensuring industry delivers reliable electricity at lowest cost for consumers.

Following Budget 2026, the Government confirmed a net increase of $0.3 million to the Electricity Industry Governance and Market Operations appropriation (around 3 cents on an average annual household bill), taking the Authority’s total funding to $120.0 million for 2026/27.

This increase is targeted solely at covering contractual cost increases, while the Authority continues to absorb its own cost pressures. It comprises an increase to the permanent baseline of the Electricity Industry Governance and Market Operations appropriation of $0.8 million, offset by some phasing of funding for the System Operator’s real-time pricing work.

Our funding consultation received strong support, with 89% of submissions supporting the approach we have taken. We will continue to communicate transparently about how our levy funding is used and the outcomes we deliver with it.