Productivity and efficiency of electricity distributors
The Commission has an ongoing focus on improving the performance of electricity distribution businesses (EDBs) over time. This includes periodic analyses and publications to provide insights into EDBs' productivity and efficiency.
The productivity and efficiency of EDBs
The productivity and efficiency of EDBs is relevant to Part 4 purpose (section 52A) of the Commerce Act. We have an obligation (under s53B(2)(b)) to publish a summary and analysis of disclosed information for the purpose of understanding the changes in EDB performance over time, and the relative performance of EDBs, which includes their productivity and efficiency.
Total factor and partial productivity analysis of the EDB sector
We commissioned Cambridge Economic Policy Associates Ltd (CEPA) to undertake a comprehensive analysis of total factor and partial productivity within the EDB sector. CEPA's final report on the EDB Productivity Study was published on 26 June 2024, following careful consideration of stakeholder feedback on the draft report.
In response to a stakeholder request, we have also published the slide pack titled “Productivity performance of EDBs – Draft findings”, which was presented at the Electricity Trusts of New Zealand Conference in Wellington in May 2024. A minor amendment was made to slide 16 to clarify a point raised by a stakeholder.
You can access the draft report, final report, and slide pack under the Documents tab below.
EDB efficiency benchmarking
We commissioned leading experts to provide an independent view of the latest thinking on methodologies for assessing and comparing the productivity and efficiency of EDBs. Professor Michael Pollitt from the University of Cambridge and Professor Erwann Sbai from the University of Auckland prepared detailed reports on this topic.
The reports can be found on the documents tab below.
Ongoing work
As part of our business-as-usual activities, we will continue to assess the productivity and efficiency of EDBs when appropriate. This includes forthcoming analysis using the Performance Accessibility Tool (PAT)open_in_new and the publication of related reports from time to time.
Contact us
If you would like to contact the team, please email infrastructure.regulation@comcom.govt.nz