2025/26 Levy-funded appropriations

This consultation seeks feedback on the Authority’s levy-funded appropriations for 2025/26, as well as our draft regulatory strategy and indicative work programme for 2025/26.

We seek feedback on three options for our operating funding, the Electricity Industry Governance and Market Operations appropriation:

• Option 1: No change
• Option 2: System operator uplift +$5.7 million
• Option 3: System operator and inflation uplift +$7.8 million

We are seeking support for Option 3, which would enable us to maintain third-party service levels and deliver high priority and high impact work faster. This aligns with Government priorities to boost our work to improve competition and security of supply, to achieve better outcomes for consumers.

About 70% of the Authority’s operating appropriation is made up of third-party service provider costs. The electricity system is becoming increasingly complex, which is resulting in third parties needing to do more and requiring more funding to do so. For example, in 2025/26 there will be an 11% increase ($5.7m) to our system operator service provider agreement, from the significant increase in volume and complexity of its activities.

We propose no change to our other two appropriations that are contingent in nature: Managing the Security of New Zealand’s Electricity Supply and the Electricity Litigation Fund appropriations.

We welcome your submissions to inform our advice to Government on the appropriate levies and funding for our work in 2025/26.

Join our webinar on Monday 25 November 10.15-11.00am to learn about the funding options and get any of your questions answered.

Register for the Q&A webinar