POWERCO - Consultation paper: Proposed changes to the default distributor agreement template, consumption data template, and Part 12A clauses - 14 November 2023

Sep 16, 2026

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Letter from Powerco Limited responding to the Electricity Authority consultation paper dated 3 October 2023 on proposed changes to the default distributor agreement (DDA) template, the consumption data template, and related Part 12A clauses. Powerco supports the consumption data template changes aligned with ENA and the Electricity Retailers’ Association. The submission challenges multiple DDA clauses on jurisdiction, necessity, and cost-benefit grounds, including clauses 7.3, 9.10, 14.2, 24.5, and Schedule 1, and notes implementation costs should be reflected in the Authority’s analysis. Attachment 1 details priority concerns and provides supporting reasoning.

LanguageEnglish

CategoryLetters

FormatPDF

Pages7

Reading Time3 min

AccessFree to download

Consultation paper response

Position on consumption data template changes

Priority concerns by DDA clause and schedule

Clause 7.3 (Price changes)

Clause 9.10 (Refund of charges)

Clause 14.2 (Power quality concerns)

Clause 24.5 (Distributor not liable)

Schedule 1 (Service Standards)

Attachment 1: jurisdiction and cost-benefit arguments

14 November 2023 Electricity Authority By email: [DDA@ea.govt. nz](DDA@ea.govt. nz) Tēnā koe, Consultation paper-Proposed changes to the default distributor agreement template, consumption data template, and related Part 12A clauses We appreciate the opportunity to provide feedback on the Electricity Authority’s consultation paper Proposed changes to the default distributor agreement template, consumption data template, and related Part 12A clauses dated 3 October 2023. We support the changes to the consumption data template (and associated Code amendments) to align it with the template that was jointly developed by the Electricity Networks Aotearoa (ENA) and the Electricity Retailers’Association of New Zealand. Our priority concerns on the changes proposed in the consultation paper are: 􀁸 Clause 7.3 (Price changes) of the Default Distributor Agreement (DDA) template is outside the Authority’s jurisdiction to regulate and in any case the proposed change is not required. 􀁸 Clause 9.10 (Refund of charges) of the DDA template is outside the Authority’s jurisdiction to regulate and in any case the costs associated with the proposed change far outweigh the benefits. 􀁸 Clause 14.2 (Customer concerns about power quality) should be amended so distributors may decline to investigate power quality concerns that are minor, trivial or vexatious. 􀁸 To avoid unnecessary and costly contract damages claims, clause 24.5 (Distributor not liable) should beamended to exclude liability for claims that the trader could have excluded in its contracts with customers. 􀁸 Schedule 1 (Service Standards) should be amended because significantly more time, cost and resource will be required to investigate and advise of breaches as well as investigate each actual or suspected breach. 􀁸 The costs of implementing the proposed changes are material and they should be considered in the Authority’s cost-benefit analysis. With the exception of the proposed changes to the consumption data template, in our view the implementation costs of many of the proposed changes outweigh the benefits. Attachment 1 provides more detail on our priority concerns. We support the ENA’s submission on, and answers to the Authority’s questions in, the consultation paper. Powerco Limited, 35 Junction Street, Private Bag 2065, New Plymouth 4340, 0800 769 372, [powerco.co. nz](powerco.co. nz) If you have any questions about our submission, please contact Nathan Hill, Regulatory Advisor, at [nathan.hill@powerco.co.nz](nathan.hill@powerco.co.nz). Nāku noa, nā, Stuart Dickson General Manager Customer POWERCO Attachment 1: Powerco’s priority concerns | DDA template cannot regulate maximum prices or revenues | As a result of the 2022 amendments to the Electricity Industry Act, the Authority has jurisdiction to include terms in the DDA template that regulate matters relating to quality or information requirements, irrespective of overlap with Part 4 of the Commerce Act. The Authority does not, however, have jurisdiction to include terms in the DDA template that purport to exercise or regulate the Commerce Commission’s powers under Part 4 of the Commerce Act to set the maximum prices or revenues that distributors may charge. The latter is prohibited by section 32(2)(b) of the Electricity Industry Act and the 2022 amendments did not change that position.
There appears to have been limited consultation between the Authority and the Commerce Commission on the proposed changes, and it is not clear whether this issue has been properly considered. | | --- | --- | | Clause 7.3 (Price changes) -proposed change outside Authority’s jurisdiction and
unnecessary | The proposed change to clause 7.3 of the DDA template (Price changes) is outside the Authority’s jurisdiction because it overlaps with the Commerce Commission’s role in setting maximum prices/revenues through a default or customised price path.
We do not agree that the proposed change to claus

FAQs

What changes does Powerco support in the consultation paper?

Powerco supports the proposed changes to the consumption data template (and associated Code amendments) to align it with a template jointly developed by ENA and the Electricity Retailers’ Association of New Zealand.

Why does Powerco object to the proposed change to clause 7.3 (Price changes)?

Powerco says clause 7.3 is outside the Electricity Authority’s jurisdiction to regulate and that the change is not required, arguing consistency already exists under the current regulatory regime.

What are Powerco’s main concerns about the cost-benefit of proposed DDA changes?

Powerco states the implementation costs are material and should be considered in the Authority’s cost-benefit analysis, and that—except for the consumption data template changes—the costs of many proposed changes outweigh the benefits.

Sep 16, 2026

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