In 2018-19, the independent Electricity Price Review investigated whether the electricity market was delivering a fair and equitable price to consumers and considered improvements to future-proof the sector and its governance structures. In 2019-20, the Government established new workstreams to action many of the Review’s recommendations.

Side by side visual comparison showing changes between the current Acceptable Solution H1/AS2 5th edition and a proposed 6th edition.

This is the status quo. Relying on the current minimum stockholding obligation settings for diesel will leave New Zealand with an average of 21 days’ cover, equivalent to 3 months’ supply for essential services with rationing. Fuel importers are unlikely to hold surplus stock beyond what is required for the MSO from 1 January 2025 because there is no commercial incentive to do so.

Summary of proposals to change Acceptable Solution H1/AS2 and Verification Method H1/VM2.

Increasing our diesel reserves would require investment into additional storage. New tanks will need to be built or existing tanks would need to be converted and updated to meet modern standards.

Proposed change to provide clearer requirements for establishing which of the H1 acceptable solutions and verification methods apply for mixed-use buildings.

On a day-to-day basis, New Zealand’s diesel supply is resilient. Diesel arrives on most fuel shipments into New Zealand. There is also more flexibility to relax standards for diesel quality compared to other fuels, so shipments into other countries can be more easily diverted to New Zealand in the case of a domestic shortage.

The latest Energy Quarterly release from the Ministry of Business Innovation & Employment (MBIE) shows the difference weather conditions can make to energy generation in New Zealand.

As with Option 2, under this option the MSO would increase to 28 days.

Proposed change to provide clear requirements on how to apply NZS 4214.