Commerce and Consumer Affairs Minister Andrew Bayly and Energy Minister Simeon Brown. Photo: RNZ / REECE BAKER
Consultation on open banking and open electricity has begun.
Commerce and Consumer Affairs Minister Andrew Bayly and Energy Minister Simeon Brown have now asked for feedback in both of those areas.
Open banking was expected to be the first cab off the rank, with a view of it being operational by the end of 2025.
Bayly said that was well before the target set by the recent Commerce Commission banking market study.
"At the moment, banks and electricity companies are operating inside a walled garden," he said.
"New entrants face high barriers to entry and as a result consumers do not benefit from innovative new products and services."
Bayly said the government was seeking feedback about the development of regulations for open banking, while simultaneously asking for information on how a consumer data regime could be established for the electricity sector.
Meanwhile, Brown emphasised the potential for open electricity to lower costs for households and businesses.
"Consumer NZ recently found that Kiwis saved an average of $524 per year by changing their electricity provider. But despite acute cost-of-living pressure, only 10 percent of households changed providers in the last 12 months."
Brown said that showed the barriers for comparing plans and switching providers were too high.
"Open electricity empowers consumers by making their electricity usage data more accessible, meaning consumers can better understand their unique needs and choose a plan that best suits their needs."
He said it would also reduce electricity companies' ability to hide behind promotional campaigns.
The government said in time, the intention was to also apply similar legislation to other sectors like insurance and telecommunications.