Generation
Electricity generation is dominated by a handful of major generators, who sell electricity into the wholesale market. These companies are vertically integrated, meaning that they also participate in the retail side of the sector. Because of this, such companies are referred to as “gentailers”.
Transmission & Distribution
Electricity is transported from where it is generated to where it is consumed through two layers of networks:
Transmission is managed nationally by Transpower, the state-owned grid operator. It operates the high-voltage backbone of the system.
Distribution is managed by 29 regional companies, which deliver electricity through local lines to homes and businesses.
Retail
Retailers purchase electricity from the wholesale market and sell it to end consumers. There are around 40 retail brands serving more than two million consumers. The sector is highly integrated, with the main retail companies being the same firms that generate most of the electricity (“gentailers”).
