Consultations on open banking and open electricity begin

Business and Consumer Affairs Minister Andrew Bayly and Energy Minister Simeon Brown.
photo: Radio New Zealand/Reece Baker

consult Open Banking Electricity has begun to be turned on.

Business and Consumer Affairs Minister Andrew Bayly and Energy Minister Simeon Brown have now sought feedback on both areas.

Open Bank is expected to be the first to launch and is scheduled to be operational by the end of 2025.

Mr Bailey said this was well above the target set by the recent Commerce Committee Bank Markets Study.

“At the moment, banks and power companies operate in walled gardens,” he said.

“New entrants face high barriers to entry, so consumers are unable to benefit from innovative new products and services.”

Mr Bailey said the government was seeking feedback on the development of open banking regulations, while also asking for information on how to establish a consumer data regime for the electricity sector.

At the same time, Brown highlighted the potential for liberalizing electricity to reduce costs for households and businesses.

“Consumer New Zealand recently found that New Zealanders could save an average of $524 a year by switching electricity supplier. But despite huge cost of living pressures, only 10 per cent of households have switched electricity supplier in the past 12 months.”

Brown said this suggests the barriers to comparing plans and switching providers are too high.

“Open Electricity empowers consumers by making their electricity usage data more accessible, meaning consumers can better understand their unique needs and choose the plan that best suits their needs.”

It would also reduce the ability of power companies to use promotions to hide the truth, he said.

The government said it plans to apply similar legislation to other sectors such as insurance and telecommunications.