"With regards to the regulatory framework. We encourage the Minister to consider if monitoring and enforcement of the market rules would more appropriately fit within the Commerce Commission's remit in a similar way the ACCC/AER performs this role in Australia at arm's length from the AEMC," Blincoe wrote.
"There is an inherent conflict in the current structure in New Zealand with the Authority responsible for both market design and enforcement. Too often the Authority has sought to put a positive spin on a market it has designed, even when it's failing."
Woods responded almost six weeks later saying she would seek advice on the suggestion.
"Some of the suggestions you make, such as the separation of regulatory rule making from enforcement are longer-term solutions requiring structural change to the market," Woods wrote.
"While this is not currently in my immediate work programme, it could be part of the longer term work programme, and I intend to seek advice from officials as to how your suggestion, and others, can best address the issues you raise about the market's performance."
Blincoe's letter said the company was pouring resources into expanding into Australia at the expense of New Zealand, saying the energy market across the Tasman was "well regulated" and electricity was "reflective of the costs of generation".
In April Woods said she had asked officials whether wholesale electricity prices were too high, at a time when analysts were warning current pricing risked political intervention.