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NZ First on Climate
Climate · In depth

Breaking up the gentailers

In depth — from NZ First’s policy document

NZ First would split the four big power companies into separate generation and retail businesses, on the argument that owning both keeps prices high and keeps cheaper retailers out. The pricing system in which the most expensive generator sets the price for all electricity would be replaced, holding back supply to lift prices would be stopped, new generation would get long-term fixed-price contracts and first use of its power, and households with solar could sell back at the price they pay. All under a National Energy Strategy.

Generation controlled
Almost 90%
By the big four power companies
The split
Generators and retailers
So no company controls both the power and the price
Pricing today
The dearest sets it
Even for electricity that is cheap to generate
Solar buy-back
What you pay for it
Households selling back at the retail rate
New generation
Fixed-price contracts
Plus a guarantee their power is used first
Framework
A National Energy Strategy
Promised, with no detail given
Closures the policy points to
  • The mills at Karioi and Tangiwai
  • Oji Fibre Solutions’ Penrose mill
  • Carter Holt Harvey’s Tokoroa plywood plant and Eves Valley sawmill
  • Balance Agri-Nutrients’ Kapuni fertiliser plant
  • Heinz Wattie’s, which has proposed ending New Zealand manufacturing, putting 350 jobs at risk

How it would work

Splitting generation from retail

The four big power companies would be broken into separate generators and retailers. The stated problem is that they control almost 90 percent of generation and then sell it back to themselves, which the document says makes it very difficult for innovative and low-cost retailers to enter, keeping prices high.

Changing how the price is set

Under the current system the most expensive generator sets the price for all electricity, including power that costs very little to produce. NZ First would replace that, and stop companies holding back supply to drive prices higher.

Certainty for new power stations

Long-term fixed-price contracts would be guaranteed for new-build generation, along with a guarantee that their power is first to be used. The claimed result is more power stations, more renewable energy, more competition and more resilience.

Selling your own solar back

Households generating their own power would be able to sell it back to the grid at the same price they pay for power — a straight retail-rate buy-back rather than the lower rates typically offered now.

A National Energy Strategy

The whole package sits under a promised National Energy Strategy. The document commits to delivering one but does not describe what it would contain or when it would arrive.

In their own words

“We will be breaking up the power companies so they can no longer control both the power and the price.”

Breaking up the Gentailers · Opening statement of the policy

“Energy security is national security.”

Breaking up the Gentailers · On why it matters

“Under the current system, the most expensive generator sets the price for all electricity - even electricity that costs peanuts to generate.”

Breaking up the Gentailers · On how the price is set

“If you generate power at home like solar, you should be able to sell it back to the grid at the same price you pay for it.”

Breaking up the Gentailers · On household generation

What the document doesn’t settle

Points the document defers or leaves undefined. These are gaps in the document, not criticisms of the policy.

  • No cost, timeline or legislative vehicle is given for the split.
  • Whether the separation would be by ownership or operational within existing companies is not stated — the difference decides how far it goes.
  • What replaces the current pricing system is not described, beyond ending the rule that the most expensive generator sets the price.
  • The solar buy-back is set at the retail price a household pays, and the document does not say who absorbs the gap between that and the wholesale rate.
  • Who would hold the fixed-price contracts for new generation, and what happens if wholesale prices fall below the fixed price, is not addressed.
  • The National Energy Strategy is promised without content or timing.
Summarised from Breaking up the Gentailers, published by New Zealand First. Read 2026-08-16.
Read the full document
Back to NZ First on Climate

Coverage at a glance

Which party holds a published position on which topic.

Open the compare tool →

Swipe across to see all 11 topics — the party column stays put.

PartyEconomyHousingHealthEducationClimateEnvironmentCrime & JusticeTreaty & Māori AffairsImmigrationForeign PolicyDemocracy & Government
National
Published position∅ No stated position (verified) Not captured yet
∅
Labour∅∅∅∅∅∅
Green
ACT
NZ First
Te Pāti Māori
TOP
Also contesting, without seats in Parliament
Women’s Rights
Animal Justice
ALCP
Conservative
Outdoors & Freedom
Vision NZ
Alliance
Free Palestine
NZ Loyal∅
Te Tai Tokerau∅