ACT says it would keep power companies whole, open up solar
ACT will not break up the big power companies if it has a say, and will keep generation and retail together.
Energy spokesperson Simon Court announced the electricity policy at Parliament on Friday afternoon, 18 September. The pledge runs directly against New Zealand First's plan to split generation from retail, according to RNZ.
Court said splitting the companies would not build more generation, secure more gas or add transmission lines. The policy would keep the current vertically integrated model in place — where the same company, known as a gentailer, both makes electricity and sells it to households.
On small-scale power, ACT proposed letting New Zealanders sell electricity they generate, choose who they sell to, and send power to the grid when there is room on the network. It would change the rules so households with rooftop solar could sell back at market-set rates.
That would move rooftop solar away from buy-back rates set by retailers to an open sale. Households could pick their buyer. Exports would still depend on available network capacity.
On networks, ACT proposed letting private investors build, own and run new transmission lines that connect to the national grid. It would also let approved providers compete for connection work paid for by customers.
It also proposed making spending on poles and wires compete with batteries and smarter grid technology. The effect would be to test traditional lines spending against other options on cost. ACT has also said monopoly lines companies — the regional firms with no competitor — must show households get value before they put more costs on power bills.
New Zealand First has promised to split the big power companies into separate generators and retailers, according to Newsroom. The party says the big four control almost 90% of electricity generation.
New Zealand First says the split is intended to bring power prices down, according to RNZ. Leader Winston Peters has acknowledged the power companies may challenge the plan.
Associate energy spokesperson Shane Jones has described that split policy as "smash them and cut them in half".
The broader context here is a debate about where to add competition. ACT would leave the big companies as they are and push competition into small-scale supply, new transmission builds, connections work and alternatives to poles and wires. New Zealand First would break up the big companies themselves.
Looking at what this means for policy design, the pressure points are clear. Market-set solar rates would need rule changes on access, pricing and export rights. Private transmission would need clear rules on who carries the build risk, connection terms and who runs the system. Contestable connections work would need accreditation and safety standards for approved providers working on or near networks.
