NZ Switches On “Open Electricity,” Unlocking a New Era of Data-Driven Energy Choice and Competition

Energy Minister Simon Watts said the reform addresses a market overwhelmed by complexity.

New Zealand is set to become a global testbed for open energy data, as the Government formally designates the retail electricity sector under the Customer and Product Data Act, paving the way for Open Electricity—a major reform designed to put power usage data directly into the hands of consumers and innovators.

Following the rollout of Open Banking, whose regulations came into force in December 2025, Open Electricity marks the next phase of New Zealand’s open-data strategy—one that could fundamentally reshape how households and businesses buy, use, and optimise energy.

Energy Minister Simon Watts said the reform addresses a market overwhelmed by complexity.

“There are more than 15,000 electricity plans available to residential customers alone,” Watts said. “Open Electricity will make it simple to instantly compare your actual energy use against every plan on the market—saving time, money, and energy.”

From averages to real-time, personalised energy decisions

Today’s price comparison tools rely largely on average consumption models, limiting both savings and innovation. Open Electricity replaces this with secure, consent-based access to individual usage data, enabling highly personalised insights and smarter decisions.

Consumers who switched power plans during recent energy-saving campaigns saved an average of NZ$358 per year—a figure the Government expects to increase significantly once real-time data sharing becomes standard.

Under Open Electricity, households and small businesses will be able to:

• Instantly compare plans based on actual usage patterns

• Share data securely with third-party providers

• Identify ways to reduce peak-time consumption

• Make informed decisions about solar installation, batteries, and electric vehicles

• Access new, data-driven energy products and services

The reforms are expected to benefit around two million households and 165,000 small businesses.

A platform for energy innovation

Commerce and Consumer Affairs Minister Scott Simpson said Open Electricity is designed to unlock competition and innovation across the sector.

“Accessing electricity usage data today is slow, inconsistent, and often costly,” Simpson said. “That restricts choice and innovation. Open Electricity removes those barriers and allows customers—and innovators—to unlock real value from energy data.”

For tech companies, Open Electricity creates a new digital layer in the energy system, opening opportunities for:

• Energy-management apps and AI-driven optimisation tools

• Fintech-energy hybrids offering dynamic pricing and automated switching

• Smart-home, EV-charging, and solar-battery platforms

• Demand-response and peak-load reduction solutions

The Government says consumers will begin seeing changes from September 2026, with full implementation completed by mid-2027.

A call to early adopters: build the open-energy ecosystem

The Government is encouraging energy retailers, startups, software developers, data platforms, EV providers, and clean-tech innovators to engage early as Open Electricity standards and APIs are rolled out.

Early adopters will be able to:

• Shape data standards and interoperability models

• Launch first-mover consumer and SME products

• Integrate energy data with finance, mobility, and smart-home platforms

• Compete on service quality, not opacity

As New Zealand transitions to an electrified, low-carbon economy, Open Electricity positions data—not just electrons—as the engine of competition and consumer empowerment.

The switch has been flipped. The next generation of energy innovation starts now.