A Collective Voice for Independent Retailers
The Electricity Authority is listening. We are uniting independent electricity retailers across New Zealand to demand market fairness, standard commercial credit terms, and genuine competition.
Prudential Requirements: Level the Playing Field
Independent retailers should operate like every other industry in New Zealand: with standard commercial credit terms, not punitive cash lockups that strangle growth and protect incumbent gentailers.
Zero Working Capital Friction
Incumbent gentailers offset retail spot purchases directly against generation revenues. They don't tie up massive reserves of liquidity to cover spot exposure because their internal netting structure shelters them.
- No mandatory cash lockups to onboard consumers
- Balance sheet scale shelters market volatility
- Regulatory design reinforces vertical integration
Penalised for Growing
Every new customer won forces independents to freeze working capital into escrow accounts or expensive bank guarantees. The current clearing rules act as an artificial cap on competition.
- Tens of thousands locked up per MW of customer growth
- Outdated multi-week settlement security buffers
- Capital trapped instead of invested into innovation
Our Specific Prudential Demands
Align electricity wholesale settlement with standard commercial 20th of the month settlement cycles.
Cut mandated prudential cover days to reflect fast smart-meter customer switching and real-time data.
Require full commercial market interest to be credited on any mandatory cash reserves held by the clearing manager.
Recognise credit insurance and diversified surety options rather than strictly demanding scarce bank guarantees.
Forum Reform Pillars
Beyond prudentials, the IERF advocates for market architecture that fosters long-term retail competition.
Wholesale Market Liquidity
Gentailers must offer commercially viable, non-discriminatory hedge contracts with transparent volume access so independents can manage volatile spot price shocks.
Internal Transfer Pricing
Mandatory ring-fencing of generation arms from retail arms. Gentailers must not cross-subsidise retail tariffs with monopoly wholesale generation profits.
Lines & Distribution Equity
Transparent, harmonised distributor tariff structures across all 29 EDB networks without preferential relationships or bespoke lockouts.
Direct Engagement with the EA
The Electricity Authority is actively seeking retail competition input. Formal joint consultation submissions are currently being prepared on behalf of independent retailers.
Formal filings concerning Part 14A Prudential requirements, Hedge Market Disclosure, and Default Distributor Agreements will be published here once submitted.
Stand With Independent Retailers
Whether you are an independent electricity retailer, an energy innovator, or a market observer, join our collective representation.