Energy Competition Task Force powers ahead with fresh agenda

The Energy Competition Task Force (Task Force) has announced it will continue its work in 2026 with a refreshed set of priorities and a greater focus on inter-agency collaboration to address competition issues in the electricity market.

Task Force member and Electricity Authority Acting Chair Erik Westergaard says the Task Force’s delivery across eight initiatives since August 2024 has helped improve the performance of New Zealand’s electricity market, adding that engagement with stakeholders earlier in 2026 has been equally important in shaping the next phase of work.

“Feedback was clear about where collaborative action would make the biggest difference, and that has helped us focus on the areas where coordinated effort across agencies can deliver real improvements for competition and consumers.”

The Task Force has identified further work that will benefit from the joint expertise and powers of the Electricity Authority, the Commerce Commission and MBIE working together. Its new collaboration priorities for 2026 are:

• Improving network performance by harnessing alternatives such as local battery storage and flexibility services to manage demand and avoid the need for transmission investments at grid exit points (GXPs)
• Addressing lines company pricing and competition issues, including connection challenges
• Continued work on level playing field measures – part of the Task Force’s original programme of work in 2024 – with final decisions due next month.

The Task Force has also signalled it will maintain a watching brief on barriers to the development of flexibility services, including whether barriers to competition arise from firms exercising market power. Task Force members may act where needed, either jointly or individually.

Task Force member and Commerce Commission Chair John Small says New Zealanders can be confident that the organisations regulating the electricity sector are aligned and working in their interests.

“The inter-agency collaboration and alignment established through the Task Force has already enabled some of the changes needed to address energy market competition issues, ultimately benefiting consumers.

“But there is still more to do. Uncertainty in the hedge market, in part driven by increased electrification, loss of domestic gas production and reliance on renewable energy, means competition remains a critical focus. At the same time, lifting network performance and tackling lines‑pricing issues are vital to unlocking more value for consumers.

“Working towards a new set of priorities means we can continue to deliver benefits for competition, consumer choice, affordability and a secure supply of electricity.”

Since its establishment in August 2024, the Task Force has delivered eight initiatives to strengthen the performance of New Zealand’s electricity market.

About the Energy Competition Task Force