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Update: New Zealand's Electricity Authority Urges Distributors to Be Wary of Consumer Impact in Phase-Out of Low Fixed Charge Plans
(Updates with a statement from Electricity Networks Aotearoa in the last paragraph.)New Zealand's Electricity Authority is urging distributors to be mindful of consumer impacts as they adjust pricing ahead of the completion of the government's phase-out of low fixed charge regulations, according to a Tuesday statement.Retailers will no longer be required to offer a low fixed charge pricing plan from April 1, 2027, but should still apply distribution pricing principles at the final stage of the phase-out, the regulator said in an open letter to distributors."There is no expectation of an immediate and full adjustment on 1 April 2027, but transparency is required," the Electricity Authority said.It added that consumer impact should be managed and balanced against other principles, including that prices should signal economic costs, any resulting revenue shortfall should be recovered in the least distorting way, and prices should remain responsive to end users' requirements and circumstances.In some cases, an immediate shift to fully rebalanced tariffs could result in significant bill increases for customers. In such cases, it may be reasonable to consider alternative transition pathways that better manage the cost impact, the regulator said.In response to a query from, industry association Electricity Networks Aotearoa said the Electricity Authority's open letter "provides some flexibility" in the final stage of the phase-out that will help lines companies manage the differing impacts between regions and customer groups.
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