Joint open letter calls for efficient solutions to growing networks

In a joint open letter to distributors ( 256 KB, PDF ), the Electricity Authority, Commerce Commission and Energy Efficiency & Conservation Authority (EECA) outline three broad actions distributors are expected to take to enable efficient non-network solutions.

Non-network solutions are alternatives to building more poles, wires and other infrastructure to meet New Zealand's growing electricity demand. They include flexible electricity use and supply, energy efficiency, distributed generation and storage. They have the potential to be delivered faster and at a lower cost.

The regulators acknowledge many are already considering deploying non-network solutions, and regulatory changes are further accelerating their use. There are further opportunities to be realised and distributors are key to enabling a competitive market for these solutions.

The three broad actions are for distributors to:

• ensure both non-network and network solutions are considered in network planning;
• use price signals that encourage consumers to flex their electricity use and supply when the network is nearing capacity so it benefits them and defers costly network upgrades;
• better enable the market to offer competitive non-network solutions, for example through transparent, standardised procurement processes across all distributors.

Distributors and others stakeholders are invited to provide feedback by email on the actions outlined in the letter on [email protected]. Feedback will help inform future thinking, priorities and work programmes across the Authority, Commission and EECA.

The regulators will continue to engage with interested parties to monitor progress and identify any regulatory or operational barriers.