Dams in the South Island were drained in December last year following record rainfall. But the water should ve been used to generate extra electricity, which would ve then cut wholesale power prices. You would expect the abundance of fuel to reduce the cost of water going through the hydro dam, so you d expect the spot price to come down during that period, Electricity Authority CEO James Stevenson-Wallace says.
Instead, prices went up because of the water spillage and four other exceptional events. We had a confluence of five events that reduced the competitive pressure on the market, he says.
The water spillage was the main problem. The Authority says the water could ve powered about 1.2 million homes for a day. The total extra cost is about $70 million.
Press Release – Electricity Authority The Electricity Authoritys Board has concluded its investigation of the undesirable trading situation (UTS) claim made by Haast Energy Trading, Ecotricity, Electric Kiwi, Flick Energy, Oji Fibre, Pulse Energy Alliance and Vocus (the claimants) …
The Electricity Authority’s Board has concluded its investigation of the undesirable trading situation (UTS) claim made by Haast Energy Trading, Ecotricity, Electric Kiwi, Flick Energy, Oji Fibre, Pulse Energy Alliance and Vocus (the ‘claimants’) in late December 2019.
The Authority has found there was a UTS between 3 December and 27 December 2019.
James Stevenson-Wallace, Chief Executive of the Authority says, “The Authority has investigated all aspects of the claim, carefully considered all submissions and concluded there was an undesirable trading situation between 3 December 2019 and 27 December 2019.”
Electricity regulator finds confidence in market may have been threatened
21 Dec, 2020 06:59 PM
3 minutes to read
A major investigation by the electricity regulator has concluded that behaviour of generators in December 2019 could have dented confidence in the wholesale electricity markets.
While the Electricity Authority (EA) said its investigation into whether an undesirable trading situation (UTS) was not necessarily about attributing blame , the report points in particular at the actions of Meridian Energy, New Zealand s largest electricity generator.
The conclusion could see the regulator reset prices in the wholesale electricity market for a three week period. A separate process will seek to determine whether any companies breached the trading standards of the electricity market.
Tuesday, 22 December 2020, 8:44 am
The Electricity Authority’s Board has concluded its
investigation of the undesirable trading situation (UTS)
claim made by Haast Energy Trading, Ecotricity, Electric
Kiwi, Flick Energy, Oji Fibre, Pulse Energy Alliance and
Vocus (the ‘claimants’) in late December 2019.
The
Authority has found there was a UTS between 3 December and
27 December 2019.
James Stevenson-Wallace, Chief
Executive of the Authority says, The Authority has
investigated all aspects of the claim, carefully considered
all submissions and concluded there was an undesirable
trading situation between 3 December 2019 and 27 December
2019. What we found in the wholesale market during
the UTS period were far from normal outcomes given the
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