Power prices have been climbing for years — and now the Electricity Authority has stepped in with new reforms aimed at bringing costs down. The changes target the “big four” gentailers (Genesis, Contact, Meridian and Mercury), making the market fairer for smaller retailers and giving Kiwis more choice.
Power prices in New Zealand have been steadily climbing, putting pressure on households and businesses alike. After years of concern that a lack of competition was driving costs higher, the Electricity Authority has stepped in with a series of major reforms. These changes are aimed at shaking up the market, challenging the dominance of the biggest players, and ultimately delivering fairer prices for Kiwi consumers.
The Electricity Authority is rolling out three major reforms designed to improve competition in New Zealand’s electricity market and reduce pressure on power prices.
The moves target the country’s four largest “gentailers” — Genesis, Contact, Meridian and Mercury — following concerns that their market dominance has been stifling competition from smaller retailers and independent generators.
The reforms were developed through the Energy Competition Task Force, a joint initiative between the Electricity Authority, the Commerce Commission, and the Ministry of Business, Innovation and Employment.
Electricity Authority chair Anna Kominik said the interventions were designed to rebuild confidence in the wholesale market and give independent retailers a fairer shot.
“Confidence in the market underpins healthy retail competition and affordable power prices,” Kominik said. “We are concerned that aspects of the wholesale market may be eroding that confidence.”
As one of New Zealand’s most popular power plan comparison websites, here at Power Compare we could not agree more! Change is needed. Bills and profits at the gentailers need to come down and affordability for everyday Kiwis needs to go up!
So what is happening? Well, the Electricity Authority is bringing in three big changes to make the power market fairer and cheaper:
Fairer trading for smaller companies
The big four gentailers (Genesis, Meridian, Contact and Mercury) may be required to sell a set amount of new hedge products that help smaller retailers manage costs and keep prices stable. If they don’t play ball, the Authority could make it mandatory.
No special treatment for themselves
Gentailers wouldn’t be allowed to give their own retail brands cheaper deals than what they offer to competitors.
Market check-up
A full review of the futures market will be done in November 2025 to make sure it’s working properly and supporting fair competition.
The Authority also said it’s ready to step in fast if there’s ever a shortage of products that keep prices stable during times of high demand.
Energy Minister Simon Watts said the changes are a welcome step, because the current system lets the big gentailers give themselves an unfair advantage — generating power and then selling it back to their own retail companies at cheaper rates.
“The new rule means they’ll have to sell power to everyone at the same price,” he said. “That levels the playing field, helps smaller companies compete, and gives Kiwis more choice.”
Watts added that the Government is still very worried about rising power costs and expects the Electricity Authority to keep pushing through more reforms. Cabinet is now considering the final report on how the electricity market is performing.
Commerce Commission chair Dr John Small said the changes will shine more light on how the market works, make it easier for new companies to enter, and spark more innovation. “We don’t expect these changes to add much cost for the big gentailers, but over time they should mean more options and lower prices for consumers,” he said.
Public feedback has already been gathered, and consultation on the detailed rule changes will run until the end of 2025. If approved, the new rules could take effect by mid-2026, but why wait?
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