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Fonterra is expected to need more electricity as it seeks to replace coal boilers and cut carbon emissions but says the current structure of the power market is not fit for purpose with ‘market power’ driving up prices.
Fonterra has joined independent electricity retailers in calling for the Electricity Authority to take stronger action to correct an ‘undesirable trading situation’ in the electricity market. New Zealand’s biggest company told the Electricity Authority in a submission that it needed to restore confidence in the market. The electricity market was “complex and opaque” and its current structure was no longer fit for purpose, Fonterra also said.