Electricity Sector Regulatory Framework, New Zealand

The problem

Regulations developed years ago were hindering investment in disruptive energy sector technologies in New Zealand. This electricity sector regulatory framework forbade distribution companies from owning generation assets or selling electricity. New technologies, such a battery storage, provide both monopoly (network) and competitive services. This blurs the line between what is a regulated monopoly and what is in the competitive market, making the application of the existing regulatory model uncertain and less efficient.