The Electricity Authority Te Mana Hiko has announced new
rules to protect consumers by improving electricity bills,
preventing large back bills and requiring power companies to
regularly check their customers are on the best plan they
offer. Under the new rules announced in Improving
electricity billing in New Zealand, billing information
will be clearer and more consistent, with charges explained
in plain language. The changes will make it easier to
compare plans, and improved prompts will direct people to
the Authority’s new comparison and switching website to
check for better deals and switch if they
choose.
Large back bills will be limited to a maximum
of six months to reduce the risk of bill shock for
households. Power companies will also be required to check
annually that their residential customers are on the best
plan they offer – and help them change at no cost if
they’re not.
Authority Chief Executive Sarah Gillies
says the package of changes are about strengthening retail
competition and empowering consumers with clearer
information, easier switching and protections against back
bills.
“We’re giving people better information about
the power they use and pay for, so they have the confidence
to shop around. We also want to reduce the stress of
unexpected back bills for households and small businesses.
“Standardisation is part of the story too,” says Gillies.
“Today we’re also announcing new
product information standards, requiring retailers to
provide structured and consistent information about their
power plans. This will improve the accuracy of comparison
websites, and bring transparency, accountability and
long-term value for New Zealanders.”
Advertisement – scroll to continue reading
The Authority is
also launching a new comparison and switching website soon,
free from commercial interest and designed to keep pace with
changes in the electricity market.
Around 1,500
electricity consumers provided feedback during consultation,
with more than 90% supporting the proposed
changes.
General Manager Retail and Consumer Andrew
Millar says these decisions complement the Authority’s
wider work to improve market settings and strengthen
competition, including introducing new level playing field
measures for the energy sector.
“This is about
demand-side competition. When consumers can see, compare and
switch more easily, retailers will have to compete harder on
price and service. That delivers long-term benefits for
consumers across the market.” says Millar.
As the next
step in standardising product information, the Authority
will shortly consult on options for the revised Electricity
Information Exchange Protocol – EIEP14A for retailer product
information to ensure plan data is consistent, accessible
and fit for accurate comparison and switching
tools.
Rule changes announced today will take effect
on 30 October this
year.