The New Zealand electricity market may have become more diverse in recent years. However, the large power companies still collectively command a strong customer share.
How is the electricity sector structured and, what is a gentailer?
Getting power to your property is a process that encompasses four steps: generation, transmission, distribution and retail.
Generation
Around 80-85% of the electricity used in New Zealand households is produced using renewable energy (hydro, geothermal, wind and, to a lesser extent, solar). And there are five main electricity generators:
- Contact Energy
- Genesis Energy
- Manawa Energy (formerly Trustpower)
- Mercury
- Meridian Energy
Each of these generators oversees a portfolio of assets that are linked to the national grid.
Transmission and distribution
State-owned Transpower is responsible for operating the national grid, transporting electricity to towns and cities throughout the country. At a local level, electricity distributors (lines companies) transport electricity from the national grid to consumers.
Retail: Which companies are gentailers?
Retail is the final stage in the process of delivering electricity to consumers. According to the Electricity Authority’s Electricity Market Information (EMI) website, there are over 25 companies operating in the residential electricity sector in New Zealand.
Up until a few years ago, each of the main generators also sold electricity to consumers via their respective retail arms. However, as we mention above, Mercury bought Trustpower’s retail business, so now only four generators/retailers, known as gentailers, remain:
- Meridian Energy – is New Zealand’s largest renewable electricity generator, and all its electricity comes from renewable sources. It sells electricity through its Meridian and Powershop brands.
- Mercury – generates electricity from 100% renewable sources. It sells electricity through its Mercury and Globug brands.
- Genesis Energy – generates electricity from a portfolio of renewable and thermal generation assets. It sells electricity through its Genesis retail brand.
- Contact Energy – generates 80-85% of its electricity from renewable sources. It sells electricity through its Contact retail brand.
As we reveal below, these gentailers are the top four retailers in the country, collectively dominating the market.
Biggest power providers by market share
According to the EMI website, as of August this year, the combined residential electricity market share of the big four gentailers was over 85%.
Parent company market share is measured by installation control point count (ICP: which the Electricity Authority defines as a physical point of connection on a local or embedded network):
- Mercury – ICP count 540,018 (27.04%).
- Genesis Energy – ICP count 465,750 (23.32%)
- Contact Energy – ICP count 409,197 (20.49%)
- Meridian Energy – ICP count 304,152 (15.23%)
- Pulse Energy – ICP count 73,524 (3.68%)
- Nova Energy – ICP count 72,814 (3.65%)
- Electric Kiwi – ICP count 59,221 (2.97%)
- 2degrees – ICP count 53,567 (2.68%)
- Octopus Energy – ICP count 7021 (0.35%)
As you can see, the market shares of smaller, independent power retailers drop off quite considerably after the big four gentailers.
Compare electricity providers for free with Canstar Blue!
About the author of this page
Bruce Pitchers is Canstar’s NZ Editor. An experienced finance reporter, he has three decades’ experience as a journalist and has worked for major media companies in Australia, the UK and NZ, including ACP, Are Media, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. As a freelancer, he has worked for The Australian Financial Review, the NZ Financial Markets Authority and major banks and investment companies on both sides of the Tasman.
In his role at Canstar, he has been a regular commentator in the NZ media, including on the Driven, Stuff and One Roof websites, the NZ Herald, Radio NZ, and Newstalk ZB.
Away from Canstar, Bruce creates puzzles for magazines including Woman’s Day and New Idea. He is also the co-author of the murder-mystery puzzle book 5 Minute Murder.
Share this article