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A proposed reliability obligation to manage dry-year risk

MBIE is consulting on whether electricity market participants should face a new reliability obligation to help manage dry-year electricity risk.

Closing date
21 July 2026

Closed 64 days ago

Added to Civics
28 June 2026
Source category
Public service
Last checked
19 September 2026

Plain-English summary

MBIE is consulting on a proposed reliability obligation for managing dry-year risk in New Zealand's electricity market.

In plain English, this is about whether electricity market participants should have stronger obligations to prepare for winters where hydro generation may be low. MBIE is asking whether extra incentives are needed and what a two-layer winter energy reliability obligation should look like.

Why it matters

New Zealand relies heavily on hydro generation, so low hydro inflows can increase the risk of energy shortages and high electricity prices.

The proposal could change incentives for electricity market participants to secure fuel or firm generation capacity ahead of risky winters.

Who may care

  • Electricity generators, retailers and other registered market participants
  • Investors and developers in generation, storage and demand response
  • Large electricity users, industrial consumers and business groups
  • Household consumers, consumer groups, iwi, hapu, Maori organisations, researchers and advisers

How to make a submission

  1. Read MBIE's discussion document and fact sheet on the official page.
  2. Use MBIE's submission form and refer to the relevant question numbers where possible.
  3. Email submissions to electricitymarkets@mbie.govt.nz or post them to MBIE's Electricity Markets Policy team.
  4. Send feedback by 5pm on 21 July 2026.

Disclaimer

Civics.nz is an independent plain-English guide and is not an official government website. Always check the official source before making a submission.