The government has announced plans to strengthen enforcement in the electricity market, proposing tougher penalties for power companies found to be breaching market rules as households continue to face high electricity costs.
Energy Minister Simon Watts said the government has agreed to amend the Electricity Industry Act 2010 to ensure companies that take advantage of consumers or distort the market face stronger consequences. The changes follow ongoing scrutiny of electricity pricing and concerns about competition and transparency.
“New Zealanders struggling with high power bills deserve an electricity market that works for them, not against them,” Watts said.
Under the proposed amendments, maximum penalties for serious rule-breaking would rise from $2 million to $10 million, or three times the commercial gain, or up to 10 percent of a company’s turnover. These higher penalties are expected to take effect in 2027, subject to legislative approval.
The government also plans to introduce an infringement system for minor but repeated breaches, allowing instant fines of up to $2,000. This system is expected to commence later this year.
Watts said the Electricity Authority, which oversees the electricity market and enforces compliance, would gain stronger tools under the changes. He said the amendments aim to “strengthen the electricity regulator, equip it with the necessary tools, and give it real teeth.”
The reforms sit alongside other energy-related measures, including the start of a procurement process for a liquefied natural gas facility, fast-track approvals for new energy projects, and work on a framework to manage dry-year supply risks.
The retail electricity sector has also been identified under the Customer and Product Data Act 2025 to help consumers compare power plans more easily.
“These steps are about making sure New Zealand has the affordable, abundant, reliable energy our economy needs,” Watts said.
The government has also confirmed new appointments to the Electricity Authority Board, including Erik Westergaard as deputy chair, alongside Anthony Baldwin, Benjamin Bolot and Murray Parrish.