2025/26 Levy-funded appropriations

Thanks to all who engaged with this consultation. We are considering all feedback and will publish submissions soon.

This consultation sought 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 sought 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 sought 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 proposed 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.

Submissions will inform our advice to Government on the appropriate levies and funding for our work in 2025/26.