Energy Minister Simon Watts and Commerce and Consumer Affairs Minister Scott Simpson say consumers will see open banking style changes in the electricity sector starting from September.
The Government has designated the retail electricity sector under the Customer and Product Data Act following the regulation of open banking from December 1 last year.
This will enable consumers to share information about their electricity consumption with trusted third parties, such as comparison websites. It should also require electricity companies to share information, including pricing, enabling people to make more informed decisions about their electricity use, the Government says.
Watts and Simpson say about two million households and 165,000 small business customers will benefit from greater choice through improved transparency and better access to their data.
"Right now, there are more than 15,000 power plans for residential users alone, making it nearly impossible to compare and find the best plan to suit people’s needs," Watts and Simpson say.
"Open electricity will make it simple to quickly compare the electricity needs of your household or small businesses against every power plan on the market, saving time and money. Recent energy savings campaigns show that consumers who switched power plans saved an average of $358 a year, a huge win at a time when cost of living is top of mind for many."
"New Zealanders can also expect lower costs through more efficient and reduced electricity consumption, and there are opportunities for network cost savings through reducing energy use at peak times," say Watts and Simpson.
"Open electricity will mean customers can access data around their electricity consumption and product options quickly, clearly, and securely – and be able to share that information securely with others who can help them get the most out of their data. This will help them optimise their energy use and make important household decisions, like whether to install solar or buy an electric vehicle."
Watts and Simpson say consumers should begin to see changes from September this year with all changes completed by mid-2027.
There's more on open electricity from the Ministry of Business, Innovation & Employment here.
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