Board Paper Advisory Groups Dec 2023 1415661 Redacted.pdf

Meeting date: 18 December 2023
1982
Act
Decision on the Electricity
Authority Advisory Group
Information
Prepared by: Sally Aitken General Manager Strategic Communications and Engagement
Nicholai Mumford, Senior Legal Counsel
Lisa Rautenbach, Senior Communications Adviser
Official
the
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Decision on the Electricity Authority Advisory Group
1.
Purpose
1.1.
This paper seeks your approval to publish the decision paper on s18(d)
.
2.
Strategic alignment
2.1.
The Electricity Authority Te Mana Hiko (Authority)’s advisory groups have a critical role to
play in the development of well-informed regulatory decision-making. The legislated groups
provide a channel to capture expertise, experience and participation from regulated and
interested parties.
2.2.
In doing so, advisory groups are a key part of the Authority’s commitment to increased
engagement and transparency, helping to build trust and confidence in the regulator and
enable participation in the development of fit for purpose regulation.
3.
Recommendations
3.1.
It is recommended the Board:
(a) approve the publication of the Electricity Authority’s Advisory Group decision paper
(b) s18(d)
r the Official Information Act 1982
4.
Summaryu
4.1.
Required under the Electricity Industry Act 2010, advisory groups have played a key role in
the development of the electricity market both before and after the establishment of the
Authority. The makeup of the groups has evolved as the industry has transformed.
4.2.
In December 2022 the Authority proposed to establish a new advisory group, noting the
significant changes underway in the sector and the need for a new advisory group to
capture a diverse range of experience and perspective to inform key Authority projects.
Released
4.3.
The proposed advisory group was including in the Review of consultation and feedback
processes consultation paper1. Submissions on the proposal were mixed although there
was broad support for a new group.
1 Review of our consultation and feedback processes | Our projects | Electricity Authority (ea.govt.nz)

4.4.
Points of contention centred on the form and function of the group, as well as concern the
Authority had failed to engage industry and other interested parties before coming out with a
proposal.
4.5.
Our response was to trial a different approach to working through these issues and to
gather diverse voices together to discuss the future form and function of the advisory group.
We set up two independently facilitated workshops and invited all submitters as well as a
few extra attendees to capture a range of experience and views. More information and the
outcomes of those workshops are captured in the decision paper. The Board were briefed
on the advisory group review and workshops in October 2023 and the slide pack is in
included for your reference.
4.6.
The workshops flushed out key areas of contention, exposed key points the Authority
needed to adjust and enabled differing views to be aired, heard and debated. While we did
not achieve (nor expect) consensus, we had great participation and engagement from
attendees and the Authority’s decision has been further informed by the workshop
discussions.
4.7.
s18(d)

nformation Act 1982


5.
Next steps
5.1.
Pending approval, we will brief the Minister for Energy’s office on the decision alongside the
decisions on the Code amendment review and consultation charter and our intention to
publish the decisions in January 2024.
5.2.
s18(d)
under the Offi

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6.
Background
6.1.
The Electricity Industry Act 2010 Section 20(1) requires the Authority to have a SRC.
Section 21(1) requires the Authority to have 1 or more other advisory groups to provide
independent advice to the Authority on the development of the Code and on market
facilitation.

6.2.
In December 2022, the Authority published a consultation paper on the review of
consultation and feedback processes. The paper acknowledged the significant change in
the electricity sector as the industry and other industries responded to the transition to an
increasingly electrified economy. The Authority noted in the paper the future direction of its
prioritised initiatives would require a new advisory group.
6.3.
The Authority proposed to establish the EAAG stating the purpose of the new advisory
group is to provide advice on the Authority’s prioritised initiatives as requested by the
Authority.
6.4.
The paper included the proposed structure and membership makeup of the EAAG and
provided three options to consider2:
(a) Option one - a small core group that co-opts other expertise
(b) Option two - a full-size group that can set up smaller working groups of interested
members
(c) Option three - a large member pool with a stronger focus on breakout groups of
members interested in individual subjects
6.5.
The paper noted the membership of the EAAG is expected to include a range of members
from small, medium, and large industry participants as well as other interested parties
including consumer groups and Māori.
7.
Submissions on the proposed group were mixed
7.1.
The Authority received 20 submissions on the Review of consultation and feedback
processes consultation paper. Most submitters supported a new advisory group but views
were mixed on the options proposed. The Authority notes the following key themes from
submissions on expectations of a future advisory group. The advisory group should:
(a)
be able to move quicker
(b)
have a clear purpose and form
(c)
have a forward view of what’s coming up
(d)
engage early before ideas are fully formed
(e)
have balanced representation (including consumers)
under the Official Information Act 1982
(f)
have appropriate administrative support
7.2.
Submitters also commented on the need for transparent and streamlined consultation
processes, with some submitters expressing concern the Authority had published a
proposal for advisory groups without talking to the sector or other interested parties first.
Released
2 Review of the consultation and feedback processes (ea.govt.nz)

8.
Delivering against our commitment to improved stakeholder
engagement
8.1.
The Authority decided to use this as an opportunity to trial a different engagement approach
and gather diverse voices to discuss the future form and function of the advisory group.
8.2.
We set up two independently facilitated workshops and invited all submitters as well as a
few extra attendees to capture a range of experience and views. More information and the
outcomes of those workshops are captured in the decision paper. The intent was to
progress the future of advisory groups using a different form of engagement to reach a well-
informed decision. We intend to replicate this engagement process across other work at the
Authority for example next steps for connection charges under our distribution pricing
workstream
8.3.
The Board were briefed on the advisory group review and workshops in October 2023 and
the slide pack is in included for your reference. The Board were supportive of the approach
and encouraged staff to progress at pace and ensure cross representation, including young
professionals in the energy sector and innovators outside of the industry.
Seeking efficiencies and improved engagement through a different model
8.4.
Sapere identified “Addressing emerging options from advisory groups and review work” as a
potential cost pressure for the Authority in the strategic baseline review. Establishing the
EAAG will require Authority resource to support the group, but staff consider this an efficient
use of resource by enabling early engagement, identification of key issues and collective
problem solving. We consider the organisation will benefit from having the capability and
experience to commission independent advice on key work priorities before and during the
decision-making process.
8.5.
Advisory group members tend to make themselves available for free or at a discount to their
normal salary. A cross section of experts and representatives is a very effective way to
address issues and opportunities for the benefit of consumers. It is worth noting the
Authority’s business case identified additional resource would enable the Authority to better
service existing advisory group(s) and / or set up another advisory group.
9.
s18(d)
under the Official Information Act 1982

Released

10. s18(d)

2


11. Attachments
11.1.  The following appendices are attached:
s18(d)
tion Ac
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Appendix A  Decision paper:
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Appendix C  Slide pack: October 2023
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s18(d)

under the Official Info
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s18(d)

under the Official Information Act 1982
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Appendix C
Slide pack

1982
Act
Information
Official
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s18(d)

under the Official Information Act 1982
Released