A review of the electricity sector recommends a new approach to regulation.

The review, commissioned by BusinessNZ and prepared by consultants LECG Ltd, was based on wide consultation with companies involved in generation, transmission and industrial use of electricity.

BusinessNZ Chief Executive Phil O’Reilly says a notable degree of consensus was achieved between the generators, Transpower and large electricity users during the report’s preparation.

“The electricity sector is critical to the New Zealand economy, so governance of the sector is critical also.

“It is a complex sector, with numerous pressing issues including security of supply, investment in infrastructure, efficiency in market transactions and wholesale and retail competition.

“We need to ensure the right institutions are responsible for the right parts of the system.

“This review makes recommendations for consideration by current industry players and regulators and provides a possible pathway for change.”

The report, Determining outcomes or facilitating effective market processes: a review of regulation and governance of the electricity sector, by Graham Scott, Kieran Murray and Toby Stevenson of LECG, has been sent to ministers, senior government officials and industry stakeholders for consideration, and is publicly available on businessnz.org.nz/.

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