New Zealand´s experience of ‘de-regulated’ electricity supply

This paper summarises New Zealand´s experience in a ‘deregulated’ electricity supply environment, emphasising the advantages of a shift from predominantly State and ad-hoc public body ownership to the current, mixed, State and private ownership structure. The author also summarises the current, increasing, level of regulatory control but identifies areas where regulation is non-existent, leaving parts of the sector subject only to imperfect market forces. The author´s objective is to summarise the prevailing situation and to set it in the context of the particular circumstances in the country. Current issues are identified. The paper is based on thirty-five years of experience in electricity sector development, operation and management in New Zealand and internationally, including the directorship of electricity supply companies in New Zealand and the conduct of regulatory reviews, optimisation studies and valuations in various jurisdictions.