Review of electricity market performance
The Minister for Energy and the Minister for Resources have initiated a review of the performance of electricity markets. The review began in early 2025 and is expected to be completed in June 2025.
On this page
The review is to advise on the impact of market structure, market design, and market rules (as set out in the Electricity Industry Participation Code 2010) on electricity market performance, and on options to improve market performance in terms of the Government’s objectives. The review will look at whether current regulations and market design support economic growth and access to reliable and affordable electricity.
The review
Performance objectives of markets
The Government Policy Statement on Electricity sets out the Government’s policy objectives for electricity markets.
Government Policy Statement on Electricity [PDF 252KB](external link) — Beehive.govt.nz
The Government expects electricity markets, comprising wholesale spot market, the markets for ancillary services, the futures and forward markets, and the retail markets for households, commercial enterprises and industrials, to deliver reliable electricity at lowest possible cost to consumers, including for businesses that compete globally.
Secure and affordable electricity supply requires markets that:
- incentivise timely investment in infrastructure and resources to reliably meet current and future demand (by existing market participants and prospective new entrants)
- achieve efficient outcomes: considering productive, allocative and dynamic efficiency
- are effectively competitive at wholesale and retail levels, ensuring entry is feasible and placing downward pressure on prices, so export businesses are globally competitive
- have effective regulation in markets where competition is not possible, and
- are regulated in a predictable and proportionate way, enabling participants and consumers to plan, invest and trade with confidence.
Approach, and scope of matters to be addressed
The review should identify and explore improvements to current market arrangements, including any alternative market models or market designs which would support the performance objectives of markets. The review should also consider and advise on the implementation of recommended measures and any alternative models to improve market performance.
View the web version of the Terms of reference
Terms of reference for a review of electricity market performance
Download the PDF version of the Terms of reference
Terms of reference for a review of electricity market performance [PDF 96KB]
Independent experts undertaking the review
MBIE has engaged independent experts to undertake the various roles that form the review process, all selected through an open competitive tender process:
Lead reviewer: Frontier Economics
Peer reviewer: NERA UK
Peer reviewer: A team of 4 international experts: Prof James Bushnell, Prof Severin Borenstein, Prof Toby Daglish, Dr Gordon Leslie
New Zealand expert: Concept Consulting
Read the Ministers' releases
Government launches review to ensure electricity market is fit-for-purpose(external link) — Beehive.govt.nz
Experts chosen for electricity market review(external link) — Beehive.govt.nz