Electricity market reform and power prices

The story so far

The Electricity Authority announced three reforms aimed at improving competition in the market, targeting New Zealand's four largest gentailers, including a new pricing rule that stops them offering discounted rates to their own retail arms.^{19 Aug 2025} Energy Minister Simon Watts welcomed the moves, saying they would level the playing field for smaller retailers.^{19 Aug 2025} Rising power prices, which affect New Zealanders on fixed or lower incomes, led NZ First minister Shane Jones to suggest his party consider renationalising the electricity sector, and he also signalled a wish for more fossil fuels in an energy shake-up.^{10 Sep 2025} The Government then announced it would respond to a review of the sector, prompted by wholesale price rises caused by last winter's shortages, and said it was prepared to support capital funding for strategic infrastructure projects because major generators had been reluctant to invest amid uncertainty, with Finance Minister Nicola Willis confirming the Crown will keep its 51% stake in these power companies.^{1 Oct 2025}

Latest

The measures are aimed at the state of the electricity market and at preventing future winter power crises.^{1 Oct 2025}

What's next

The Government is set to deliver its response to the electricity market review.^{1 Oct 2025}

Key moments

1. 19 Aug 2025Electricity Authority announces three reforms targeting the four largest gentailers, including a pricing rule.
2. 10 Sep 2025Shane Jones suggests NZ First consider renationalising the electricity sector amid rising prices.
3. 1 Oct 2025Government announces it will respond to the electricity market review after winter shortages.
4. 1 Oct 2025Government says it will support infrastructure funding; Crown to keep 51% stake in power companies.

Written from the stories below; each sentence links to its sources.