Electricity Authority funding options following Strategic Baseline Review

In December 2022 we were engaged by the Ministry of Business, Innovation and Employment (MBIE) to undertake a strategic baseline review of the Electricity Authority. We reported on the Strategic Baseline Review in August 2023 but were not able to provide strongly evidenced funding options given the information available to us at the time. That is, we would have had to make assumptions that would be better informed by the Authority’s intended actions in response to:

• the strategic baseline review recommendations (particularly shifts in ways of working and potential efficiencies) and
• its thoughts on medium-term regulatory strategy and its priorities in light of this strategy.

Instead, our strategic baseline review outlined further work that would be needed to provide clear funding options and the Authority agreed to undertake further work to develop potential funding options.

Following the review, the Authority created a “Business Case: Enabling a Consumer-Focused Transition” which we were asked to evaluate. With the additional details from this Business Case, the team, consisting of David Moore, Angus White and Toby Stevenson, re-examined the outstanding questions relating to options to manage within different funding paths. The results are presented in this report.