Targeted information disclosure review for electricity distribution businesses

The purpose of Part 4 of the Commerce Act 1986 is to promote the long‐term benefit of consumers in markets where there is little or no competition and little or no likelihood of a substantial increase in competition.

Part 4 requires electricity distribution businesses (EDBs), also known as electricity lines services providers, to disclose information about their performance with the aim of encouraging them to improve efficiency and quality as well as incentives to innovate and invest.

The legal framework we apply when setting or amending ID requirements to EDBs is set out in the Part 4 Information Disclosure Framework paper.

The need for this review

Through stakeholder feedback and our own analysis, we are aware that a number of changes are required to make the current information disclosure (ID) requirements more effective. The need for this review, and any future reviews is driven by the changes that are happening in the electricity sector. One of the most significant is the drive to decarbonise the NZ economy which will significantly affect EDBs.

Wider work programme

This targeted information disclosure review (TIDR) for EDBs is part of an overall package of projects looking at how the regulatory regime should respond to changes in regulated sectors, particularly the impact of climate change and decarbonisation. Please refer to our 2023 input methodologies review for more information.

Targeted Information Disclosure Review (Tranche 1)

In November 2022, we published our final decision on Tranche 1. The final decision and associated papers can be found in the document tab below.

The Commission introduced new requirements on local electricity lines companies to improve performance information available to consumers and other stakeholders. This additional information will provide greater transparency about how companies manage their assets, how the company is preparing for the potential impacts of decarbonisation and the quality of service the company provides to its consumers. The amended determination and the final draft paper can be found in the document tab below.

Workshop on new ID requirements for EDBs

In March 2023, we held an in-person technical elements workshop and presented an overview of issues raised by stakeholders in submissions for Tranche 1 in the following areas:

• Asset Management Plan Requirements
• New Connection Measures
• Breaking Down SAIDI and SAIFI Values
• Network Visibility and Information
• Vegetation Management.

The full slide pack presented on the day, and a companion slide pack summarising the main points raised can be found in the document tab below.

Targeted Information Disclosure Review (2024)

As part of this targeted information disclosure review, we changed some existing ID requirements and added some new ID requirements for EDBs in the following areas:

• Quality of service
• Decarbonisation
• Asset management

These changes will enable stakeholders (including customers) to better understand how EDBs are performing now and in the future.

The TIDR (2024) final decision and associated documents can be found in the document tab below.

EDB ID Issues and guidance register

We publish an EDB Information Disclosure Issues and guidance register to record any issues or queries stakeholders raise about implementing the ID requirements, and our response to them.

Updates to the register are ongoing. Link to updated issues register below.

Contact us

Throughout this process, we will be working closely with EDBs and other stakeholders on changes to ID requirements which we expect to improve the long-term benefit of consumers.

If you would like to contact the team, please email infrastructure.regulation@comcom.govt.nz.