Energy Minister Megan Woods to consider regulator s powers amid calls for structural reform of electricity sector
23 Dec, 2020 04:30 AM
4 minutes to read
The Benmore Power Station, one of a string of South Island generation assets owned by Meridian Energy. Photo / Richard Robinson Energy Minister Megan Woods will examine whether the electricity regulator needs new tools after a major investigation found a lack of competition in the wholesale electricity market led to prices being higher than they should have been in late 2019.
Although the report deliberately stopped short of blaming any company, the complainants that led to the investigation said the regulator had effectively pointed the finger at Meridian Energy, which spilled more water than necessary at Benmore, raising prices for the entire market.
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.
An undesirable trading situation (UTS) is a situation outside the normal operation of the electricity market that threatens, or may threaten, confidence in, or the integrity of, the wholesale market and which cannot be addressed by other provisions of the Electricity Authority’s code. The authority confirmed on Tuesday that there was a UTS between December 3 and December 27 last year. It will consult early next year on proposals to correct the situation. ”What we found in the wholesale market during the UTS period were far from normal outcomes given the conditions at the time,” said Electricity Authority chief executive James Stevenson-Wallace.