CAC submissions that were “uncomfortable” for the EA
These are the stand-out ones that really put the heat on the Authority’s performance and mandate.
(a) Consumer Care Guidelines – “voluntary isn’t good enough”
In October 2023, CAC’s submission on Options to update and strengthen the Consumer Care Guidelines said, in essence:
- Voluntary guidelines are not working – there is “evidence of consumer harm” and “reliance on voluntary guidelines is not providing effective protection and mandatory safeguards are required.”Electricity Authority
- The EA’s approach “does not reflect its expanded legislative mandate” after the 2022 law change adding the specific small-consumer objective.Electricity Authority
- New Zealand is now out of step internationally: other regulators have moved to mandatory standards, leaving NZ consumers with fewer protections.Electricity Authority
That’s a very direct challenge: it basically accuses the EA of under-using its new statutory powers and leaving vulnerable consumers exposed.
(b) Distribution pricing – “you’re focusing on networks and retailers, not consumers”
In August 2023, on Targeted Reform of Distribution Pricing, CAC:
- Explicitly said the issues paper “is concentrated on the impacts on distributors and retailers and does not effectively consider the situation of domestic and small business consumers.”Electricity Authority
- Reminded the EA of its new statutory duty to protect domestic and small-business consumers and recommended the Authority “actively considers the effects of distribution pricing options” on them.Electricity Authority+1
Again, pretty blunt: you keep talking about signals and cost-recovery; you’re not centring small consumers despite your legal objective.
(c) Winter 2023 options – “don’t dump market failures on households”
In December 2022, on Driving efficient solutions to promote consumer interests through winter 2023, CAC said:
- Small consumers “should not bear the brunt of winter shortages” and shouldn’t be left to shoulder the consequences of “operational coordination problems” in the supply system.Electricity Authority
- Windfall generator profits should be used to help consumers through winter, not leave households paying for market failures while generators make large gains.MBIE
- EA consultation timeframes were too short for meaningful consumer participation.Electricity Authority
That goes straight to the heart of EA’s wholesale-market credibility and process.
(d) Wholesale competition review – structural critique of the market
CAC’s submission on Promoting competition in the wholesale electricity market was backed by a 36-page NZIER report they commissioned. That report concluded:
- The current market design and pricing methodology may allow exercise of market power and discourage independent renewable entry.Electricity Authority
- Sustained higher wholesale costs that benefit generators “far beyond their costs and a fair rate of return” are not consistent with the EA’s statutory objective.Electricity Authority
- The new small-consumer objective makes it “very clear” the EA must consider impacts of the wholesale market structure and pricing on households and SMEs.Electricity Authority
So CAC was using independent economics to question whether the EA has allowed a structurally tilted market to persist.