The government is acting to secure fair electricity prices for Kiwis by strengthening the Electricity Authority, Energy Minister Simon Watts said.
“Kiwis are feeling the pressure of high power bills,” Watts explained. “The government is moving quickly to fix this by strengthening the Electricity Authority, which oversees the electricity market and makes sure power companies play by the rules.”
“The government has agreed to amend the Electricity Industry Act to give the Electricity Authority real teeth, providing it with the tools it needs to maintain a fair and competitive market.”
The changes will ramp up penalties for serious breaches, lifting the maximum from $2 million to $10 million—or three times any commercial gain, or 10% of a company’s turnover.
Instant infringement fines—up to $2,000—for minor, repeated breaches will also be introduced.
The reforms will also enhance the Authority’s power to update rules and monitor the market, driving greater competition and stronger consumer protections.
Higher penalties take effect in 2027, while the new infringement system launches in 2026. The tools align with the Commerce Commission’s existing powers.
“These changes will mean power companies will face real consequences if they try to take advantage of customers or distort the market,” Watts said.
“New Zealanders struggling with high power bills deserve an electricity market that works for them, not against them.”
“A stronger, more effective regulator will help keep prices fair, encourage competition, and give families and businesses more confidence that they’re not being overcharged.”