Tom Pullar-Strecker05:00, Apr 30 2021
Stuff-co-nz
Flick Electric chief executive Steve O Connor says he has a growing conviction the electricity market is “fundamentally flawed and failing”.
An attempt by the Electricity Authority to “correct misconceptions” about the electricity market has prompted a backlash from Flick Electric chief executive Steve O’Connor who said the authority needed to “see things as they are”. A statement issued by the EA earlier this week said New Zealand’s electricity market was well-regarded internationally and was “doing the job it is designed to do, reflecting lower levels of supply – hour by hour and day by day”.
“This is more of the same track record of the authority failing to create rules that protect consumers, he said. “The impact is complete loss of confidence in the market. It is consumers who will pay for this at the end of the day.” The Government should now move to structurally separate ‘gentailers’ and break up Meridian’s generation assets, he said. “At some point the minister has got to make a decision about whether she has got the right regulatory body.” Woods responded that the authority had her confidence. “It is important to note that the Electricity Authority is an independent agency which I cannot direct to regulate in specific ways,” she said.
But dry weather, gas shortages, and a long spell of relatively low investment in new generation have combined to send spot market prices soaring above 30 cents a kilowatt-hour for much of this year. Spot market prices have been reflected in steep rises in electricity futures prices, which are threatening to flow though into broader price rises for small businesses and consumers. The proportion of electricity generated by renewables has slipped below 80 per cent as the Huntly Power Station burns more coal to keep the lights on. Woods acknowledged the share of electricity produced by renewables would have fallen in both 2019 and 2020 but said it was too soon to say if it would fall for a third consecutive year, this year
New biggest expense for Australians whitsundaytimes.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from whitsundaytimes.com.au Daily Mail and Mail on Sunday newspapers.