Consumers will be able to access cheaper off-peak electricity under new pricing rules. Photo / 123rf
Consumers will be able to access cheaper off-peak electricity under new pricing rules. Photo / 123rf
By RNZ
Big electricity retailers will have to offer cheaper prices for off-peak power use and fair prices to people who sell surplus power to the grid from rooftop solar panels at peak times.
The Electricity Authority is changing sector rules to require retailers with more than 5% market shareto offer time-of-use prices from the middle of next year, after a report by a joint taskforce of the authority and the Commerce Commission.
The changes were designed to give consumers more choice in how and when they use power, and put downward pressure on prices.
“Currently, access to time-varying pricing plans for power use and supply is very limited. The decisions announced today will help drive retail innovation and ensure most New Zealanders have access to these plans within a year so they can benefit from cheaper off-peak power,” Commerce Commission chairman John Small said.
“They also strengthen the case for rooftop solar systems with batteries, by rewarding people with these systems for the savings they provide the network when selling power into the system at peak times.”
Electricity Authority chairwoman Anna Kominik said the changes would give consumers more choices for how they consume and supply power, and reward choices that benefit the system and keep power prices down.
“Consumers who engage as active players in the power market will become important contributors to a more sustainable and dynamic electricity system, and we will all benefit from this through lower power costs,” Kominik said.
The changes mean retailers will have to offer fair prices to people who sell surplus power to the grid from rooftop solar panels at peak times. Photo / 123rf
Big power sellers, lines companies targeted
The changes would directly affect the big four generator-retailers – Contact, Genesis, Mercury and Meridian – which have about 83% of the retail market.
In background information, the authority said none of the large retailers offered time-of-use plans to all customers, and for those that did, it benefited owners of electric vehicles.
It said time-of-use pricing would mean cheaper power at off-peak times and more expensive power at peak times, which it defined as typically on weekdays from 7-10am and 5-9pm.
Off-peak times were usually overnight, in the middle of the day or on weekends.
It said heavy electricity users would benefit, but those unable to change their consumption habits were unlikely to save money.
Lines companies would also be covered by the rules changes in giving a rebate to consumers who upload power at peak time to the electricity grid from sources such as solar panels and batteries.
Kominik said the authority would contact large retailers and distributors over the coming months about the changes, which would come into effect in the middle of next year.
