Anna Kominik: Electricity Authority Chair on the new rules impacting New Zealand's largest power providers

The winter season means higher power bills will impact Kiwi households, but the Electricity Authority has promised changes are on the way.

The nation's largest power companies will be required to offer 'time of use' plans that make it cheaper to use power at off-peak times.

Electricity Authority Chair Anna Kominik says there's no silver bullet for bringing prices down, but these changes are important for the sector's future. 

"Basically, we'll make sure that cheaper off-peak power and most New Zealand households can access a pricing plan that gives them a cheaper rate for electricity use during off-peak hours." 

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Episode Transcript

Speaker 1 (00:00):
Right now. If you've been hit by some shock power
bills this winter, you're not alone, and the Electricity Authority
is promising to change that for you. Larger power companies
are going to be forced to offer time of use
plans that make it cheaper to use power during off
peak times. Not all companies offer this at the moment,
they would be forced to. Plus, they would also be

(00:20):
forced to pay a fairer return for people. If you've
got solar panels and you feedback into the grid during
a peak time and a comonic, is the chair of
the Electricity Authority with me tonight? Hello?

Speaker 2 (00:31):
Hello?

Speaker 1 (00:32):
Is this tinkering around the edges? This stuff?

Speaker 2 (00:36):
Look, there's no silver bullets for the electricity getting affordability
into the electricity sector. What we've announced today is really
important for consumers. What we're announcing as market changes that
will support cheap, cheaper off peak power and fair awards
for solar and battery users. Those are really important for
the future of the electricity sector. They basically make sure

(00:59):
that cheap off peak power make sure that most New
Zealand households can access the pricing plan that gives them
a cheaper rate for electricity use during off peak hours.
At the moment, only about ten percent of households, or
about two hundred and twenty thousand homes, are currently on
a time of Youth plans. And so we estimate that

(01:19):
the savings for a typical household from the changes that
we're putting in place today are actually sort of between
eighty two one hundred and eighty dollars a year, depending
on the circumstances.

Speaker 1 (01:32):
Is this going to be and that includes the solar
changes or just the time.

Speaker 2 (01:35):
Includes sol that include solar changes.

Speaker 1 (01:38):
Well, how much of it is the solar versus the time.

Speaker 2 (01:41):
Of use what does depend on the circumstances of the
individual household. But you know, for those of people who
are looking to actually move their power usage off peak,
then the changes we're making today will be significant. For
those who have been able to invest in solar and battery,

(02:03):
that is a significant incentive for them to actually reward
or to benefit the rest of consumers by actually feeding
back into the grid. And you know, it's to be
what we need to be really clear about is that
you know, even for those who have not got solar
and battery, we all benefit if consumers are actually feeding

(02:24):
back into private is jumping back into it.

Speaker 1 (02:28):
It's going to be rich, really rich people who have
got solar and can afford it.

Speaker 2 (02:31):
Right, Well, the return on investments for solar and battery
is increasing a year on year if you talk to
you know, those who are actually coming out, and we've
got some banks who are now providing our low interest
or zero interest loans to actually put on solar and battery.
So you know, we expect the uptake of solar and
battery to increase, and particularly with evs as well.

Speaker 1 (02:54):
And are coming back to time of use. You said
the book it could save eighty two one hundred and
eighty a year. What it will be significant how many
people will actually do that because there are power companies
out there already that offer time of use charges. So
if people wanted it, wouldn't they be going there already. Yeah.

Speaker 2 (03:13):
Well, so last year we surveys surveyed are electricity retailers
and found that none of the six largest electricity retailers
were offering time of use plans to all the customers.
So that represents a pretty huge number of New Zealanders
who didn't have that option. There are retailers who provide
time of use now and some of those RETAPO retailers
are moving too quickly to provide time of use. We

(03:37):
want to see that across the board. We want to
see consumers with that option. Of course it's not going
to you know, it benefits everybody, will not be right
for everybody, but we should have that choice in the market,
and it's a real missing that we haven't had it.

Speaker 1 (03:53):
Is this your first strike? I mean, is there more
substantial changes for the sector to come?

Speaker 2 (03:59):
We have got a whole program of reforms that are
rolling out. It's a focused program basically to simplify, standardize,
and get more transparency in the market. So some of
the things that we're working on at the moment unlocking
better access to real time energy data so you and
I can make better decisions about how we're using our energy,

(04:20):
but also launching a new comparison and twitching tool that
makes it much easier for people to find the best
deal and make sure that the information that we're getting
about our energy use is simple and easy to understand.

Speaker 1 (04:35):
All right, and I appreciate your time, Good luck with
your mission and a common Chair of the Electricity Authority.
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