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Electricity Regulation in New Zealand: the Early Stages of a New Regime

The electricity industry of New Zealand became subject to formal industry-specific regulation between 2001 and 2005. This article examines the disputes that arose in 2006 in the fields of the project approval of new transmission lines by the Electricity Commission, and the price control of local distribution companies by the Commerce Commission. Also examined are proposals for substantial change in the methods used in price control. The article concludes that the controversy is largely due to the recency of the new regime of regulation, and its difference from the previous regime where there was almost no such regulation. The new regime and the proposals for change will bring the regulation of New Zealand’s electricity industry closer to that of most other countries.