In the context of rapidly shifting customer expectations and technology developments, the FTI-CL Energy team examined how the traditional roles of Electricity Distribution Businesses (“EDBs”) in New Zealand are likely to evolve in the future, and what new and additional roles EDBs might need to deliver in the future.
Based on this analysis, our report assessed a number of case studies of performance-based regulatory tools that could support the delivery of the new EDB roles, including innovation and uncertainty mechanisms and totex. The report also identified the extent to which these tools are likely to be suitable to be implemented in New Zealand to provide an environment in which customer-centric behaviour by EDBs is recognised and rewarded.