Wholesale electricity prices are incredibly high – an analyst explains how the major power generation companies are handling it. Video / Alyse Wright
The head of the Commerce Commission says it is a “major concern” some New Zealand businesses have expressed reluctance to speak publicly about their energy struggles for fear of commercial retaliation from power companies.
Dr John Small, the commission’s chair, told the Herald in an interview on Friday thathe was asking his team to look at changes to its whistleblower tool for anyone with concerns about practices in the sector.
“We are on the side of competition here. We want all this stuff to work well, so we’ll do what we can,” Small said. “This is new information for me, but it’s concerning enough that we’ll put some effort into that.”
TheHerald revealed on Thursday that an Auckland Business Chamber and Northern Infrastructure Forum (NFI) survey process had highlighted that some businesses had concerns about their ability to speak publicly about their struggles with rising energy costs.
“Many of the businesses we spoke to – especially those dependent on gas supply – were really uneasy about speaking publicly, for fear that it could jeopardise their ability to secure future energy contracts with the gentailers, who control close to 85% of the retail market,” said the chamber’s chief executive, Simon Bridges.
However, the issue Bridges has raised appears not to be widely known by officials.
The Electricity Authority said it was aware of one business recently requesting a consultation submission remain anonymous because of commercial concerns, but not of similar concerns from businesses.
Energy Minister Simon Watts called the allegations “disappointing” but hadn’t heard them directly from businesses. He will ask his officials to consider the findings, however.
Small has now said he hadn’t run into this issue with the energy sector before and was “intrigued” by Bridges’ insights.
Commerce Commission chair Dr John Small said the information was a "red flag". Photo / Mark Mitchell
The Herald’s Thursday story was shared on LinkedIn by Karen Boyes, the Major Electricity Users’ Group executive director, and Small commented, calling Bridges’ information a “big red flag”.
He said there was “this fear in grocery suppliers” and Grocery Commissioner Pierre van Heerden and the Commerce Commission were making “good progress” addressing it.
“Sounds like we may need to transfer those insights/methods to electricity,” Small wrote.
Speaking in an interview with the Herald on the matter, Small said there are currently two main ways for people with concerns about behaviour to address them with the commission.
That includes directly contacting the commission or using its whistleblower tool, which Small said is a “super secure route” with not even the commission knowing who provides the information.
“I’ve just been talking to the website team today and we are looking at making a more generic one so people can use that whistleblower service for anything,” Small said.
The whistleblower tool aimed at the grocery sector was announced last year so New Zealanders, including suppliers, could come forward confidentially about any inappropriate behaviour.
“We’re aware of situations where players in the grocery sector, such as suppliers, may believe they are being mistreated by a major supermarket, but are concerned about being disadvantaged if they share information with the commission – they can now do this easily and without fear," van Heerden said at the time.
As well as “getting this secure whistleblower tool configured for the energy sector”, Small said, the commission will also ensure it’s “more active in getting out there and talking to people and putting a human face to us, so that people come to trust us a bit better”.
Auckland Business Chamber chief executive Simon Bridges raised the concerns on Thursday. Photo / Jed Bradley
He said the issues raised by Bridges were a “major concern”.
“We know that businesses in New Zealand are doing it tough with energy prices ... There’s a risk of deindustrialisation. We’ve seen companies close down. We don’t want to see that again.
“It’s a matter of policy focus, generally throughout the Government, and it’s definitely a matter of concern for us. We want to promote competition in that sector. We want to find a way of getting more generation in there and driving those prices down.”
Electricity Retailers’ Association (ERANZ) chief executive Bridget Abernethy told the Heraldthis week that cost-of-living pressures in the electricity sector “reflect those right across our economy”.
“Unfortunately, a shortage of the gas we need to generate electricity, along with increased transmission and lines charges, mean costs are under even more pressure,” she said.
“ERANZ members and other generators are continuing to rapidly build more generation, which is the most effective step to address these cost pressures in the longer term.”
She said retailers were focused on “the best interests of their customers” and were available to help them with pricing or supply issues.
“We encourage businesses with questions or concerns to talk to their retailer – they are there to help. Our members always welcome engagement and feedback from businesses and industry groups.”
Jamie Ensor is a political reporter in the NZ Herald press gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. In 2025, he was a finalist for Political Journalist of the Year at the Voyager Media Awards.
