Regulator opens investigation into power and gas prices after complaint from businesses
Thursday, 14 August 2025
The Electricity Authority has announced it will investigate concerns about pricing, contract availability, and business conduct in both the electricity and gas markets.
It said the Northern Infrastructure Forum and other organisations had raised concerns with the authority, which is the peak regulator for the power industry.
“After initial checks, the authority believes the issue needs a closer look.”
The forum, which operates under the umbrella of the Auckland Business Chamber, was among organisations that wrote an open letter to Prime Minister Christopher Luxon last month urging him to take urgent action to “reshape the energy market”.
Executive director Barry Irvine said it did not expect to be able to divulge the details of the complaint it had made to the Electricity Authority, making clear that some businesses believed that doing so could disadvantage them in future dealings with power suppliers.
But he confirmed the authority’s characterisation of its concerns as involving pricing and contract terms was correct.
The essence of the complaint appears to be that businesses have been disadvantaged by power suppliers failing to compete vigorously for their custom in the manner envisaged by market rules.
The forum had examples of power suppliers failing to honour their “market making responsibilities” by in effect refusing to supply businesses, refusing obligations to maintain existing terms when contracts changed hands and demanding “unreasonable and unrealistic” contract terms, Irvine said.
The Electricity Authority has been accused in the past by independent electricity retailers of being captured by the major generators.
Power retailer Electric Kiwi said in 2023 that its faith the authority would protect consumers was at a “new all-time low” after the EA made what the power firm viewed as weak recommendations to improve competition in the electricity market.
Then chief executive Luke Blincoe said the authority “can’t seem to find its own feet” after it chose not to recommend structural reforms to the power market, despite earlier admitting it could not explain high wholesale prices.
But Electricity Authority chairperson Anna Kominik said on Thursday in reference to the Northern Infrastructure Forum complaint that it took all concerns that had been raised seriously.
“Any concerns related to consumer trust or market fairness demand attention,” she said.
The authority had broad powers under the Electricity Industry Act 2010 to investigate and hold market participants accountable, the regulator said in a statement.
“We have started a review under section 16 of the act focused on business consumers’ access to electricity contracts, including commercial and industrial consumers,” Kominik said.
The authority said it was working closely with the Commerce Commission, which had launched a “whistleblowing tool” to make it easier for parties to report issues.
The investigation comes as power companies prepare to report their financial results for the year to the end of June, with one broker forecasting an increase in their collective dividend pay-outs to shareholders to more than $1.4 billion.
More to come