He told RNZ that making it the highest of the three meant there was technically no limit to the potential cost power companies may be required to pay. There have been calls to split the generation and retail arms of the large power companies, with the aim of increasing competition and lowering prices. Watts said the new penalties will match what the Commerce Commission can do and allow better monitoring of the electricity market. The Government is moving quickly to fix this by strengthening the Electricity Authority, which oversees the electricity market and makes sure power companies play by the rules.”The changes will require amendments to the Electricity Industry Act. “The timing of Ms Kominik’s decision was linked to another professional opportunity, and because the time is right following the Frontier Economics Review of Electricity Market Performance,” Watts said at the time.

Source: New Zealand Herald January 14, 2026 09:19 UTC