
The recently announced Energy Competition Taskforce has announced "two packages of work that collectively aim to encourage investment in new generation, bolster competition and provide more opportunities for consumers to manage their own electricity use and costs" and said it is "serious about creating change". Of particular interest to Rewiring Aotearoa was the section about better rewarding customers to "encourage greater uptake of things like time-of-use pricing plans, rooftop solar and batteries, and demand response by industrial firms," as EA chair Anna Kominik said in a press release. This is positive and aligns with what we've been asking for and what we outlined in our symmetrical export tariffs paper, but it is important to note that these are not rebates. This is just cost-reflective two-way pricing that levels the playing field between small and large generators. As Rewiring Aotearoa CEO Mike Casey says: "To date, every home giving energy back has been getting a bad deal. We believe their contribution to the system should be accurately priced and, as we said when the taskforce was announced, we want a level playing field, not just a slightly less uneven playing field." Casey says this pricing also needs to be mandatory otherwise the EA risks further delay to keeping bills down and building a more secure and resilient energy system. "We talk about guaranteeing investment signals on the big end of town. How about the average Kiwi got some guaranteed investment signals that are fair?"
The Task Force is investigating the eight initiatives listed below. It will present advice to the boards of the Commission and Authority for final decisions.
Package 1 – Enable new generators and new retailers to enter, and better compete in the market
• Consider requiring gentailers to offer firming for Power Purchase Agreements
• Introduce standardised flexibility products
• Prepare for virtual disaggregation of the flexible generation base as a backstop measure
• Investigate level playing field measures such as requiring gentailers to treat the retail arm of
their business the same as they treat other retailers (‘non-discrimination rules’), as a
backstop, which could be promptly deployed if other interventions are not effective.
Package 2 – Provide more options for end-users of electricity, options being considered include:
• Requiring distributors to pay rebates when consumers export at peak times
• Requiring all retailers to offer time of use pricing
• Requiring retailers to better reward consumers for supplying power by offering prices that reflect the value of the electricity at the time they supply it (eg, at peak times)
• Appropriately rewarding industrial consumers for the benefit their short-term demand flexibility brings to the system.
Visit www.ea.govt.nz/taskforce for more details on these measures.
And see how much more customers with solar and batteries exporting at peak times could be paid on our symmetrical export tariffs page.
When Mike Casey bought his house near Cromwell, it came with gas bottles on the side of the home for water and an expensive diesel system for the underfloor heating. He replaced both of them with a Steibel Eltron system and it's been saving him money ever since. As technical manager Bhawesh Singh told him at the Electrify Queenstown conference, there has been a big influx in enquiries from homes looking to get off the molecules and onto electrons.
Read moreDownloadConfidence that cutting regulations to make solar power more accessible - won't jeopardise people's safety. A new Regulation Ministry reports laid out a potential blueprint to legalise plug-in solar and reduce the time and cost of panel installation. Rewiring Aotearoa CEO Mike Casey shares his thoughts with Andrew Dickens.
The burgeoning demand for solar was also a chance to address a mismatch between the numbers of training opportunities available and young people searching for work, Casey said. "The mums of New Zealand are telling me that there's not enough apprenticeships for their kids and the solar installers of New Zealand are telling me there's not enough trained people."
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