Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Electricity Reforms Accelerated By Winter Review

Tuesday, 11 December 2001
Media Statement

The Government is taking steps to accelerate the implementation of the Power Package reforms as a result of its review of this winter's electricity supply difficulties.

Other changes will make the wholesale electricity market more transparent - and electricity retailers are being warned that unless they compete effectively, the Government may require them to offer a set amount of power on the hedge market.

Energy Minister Pete Hodgson said today it was clear from the review that the wholesale electricity market would have worked better if the changes specified in the Government Policy Statement of December 2000 had been fully implemented by the industry.

"The electricity industry has made significant process towards the changes required by the government, but not yet enough," Mr Hodgson said. "I am now establishing milestones for market improvements specified in the Government Policy Statement to be implemented before next winter."

These improvements will include: · projections of system adequacy; · disclosure of forward hedge prices; · disclosure of generator offer prices into the market; · development of real time spot market pricing and promotion of demand-side participation; · arrangements for agreeing on and paying for new transmission investments to relieve constraints; and · development of financial instruments to manage transmission risk.

"Further, in light of concerns about high spot prices, I intend to amend the Government Policy Statement to require public disclosure of generator offers into the wholesale market after 2 weeks instead of 3 months. This will give consumers and other interested parties an early opportunity to seek explanations from generators if questions arise about offer behaviour and prices."

Mr Hodgson said he expected the New Zealand Electricity Market to introduce this further level of disclosure as soon as possible. The NZEM recently introduced free information disclosure about wholesale electricity prices, electricity demand and hydrology for hydro storage, which Mr Hodgson welcomed. "I am also advising the electricity industry that the Government expects effective retail competition - and if this does not eventuate, the Government will consider further measures including mandatory tendering of hedges and separation of retail and generation businesses. I have asked officials to keep under review the option of requiring all generators to tender hedges for a percentage of their dry-year capacity.

"There are enough electricity retailers in the market for effective competition to occur, but only if regional monopolies do not develop. Incumbent retailers are therefore on notice that mandatory tendering may be used to open up the market if competition is inadequate."

The government received 47 submissions and 12 counter submissions to the 2001 post-winter review. Opinion was divided on whether the wholesale electricity market had responded effectively to an extraordinarily dry winter, but a majority took the view that the market was more effective than past arrangements at signalling and managing constrained supply and increased demand.

Ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Tax Working Group’s Road Map

Trying to analyse the interim report on the Tax Working Group (TWG) is like trying to review an entire All Blacks game, but at the half- time mark.

With so much still to be finalised, Sir Michael Cullen and his colleagues are going to need all the All Blacks’ fabled finishing skills to get a coherent, fiscally neutral package together by the February 2019 deadline. More>>

 

Meth Testing Report: Housing NZ "To Right Wrong"

Phil Twyford “Housing NZ acknowledges that around 800 tenants suffered by either losing their tenancies, losing their possessions, being suspended from the public housing waiting list, negative effects on their credit ratings or, in the worst cases, being made homeless.” More>>

ALSO:

No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>

ALSO:

Pay Equity Bill: Making History For Women’s Pay

The Equal Pay Amendment Bill, introduced to the House today, will make it easier for workers to make a pay equity claim , using a more simple and accessible process within New Zealand’s existing bargaining framework. More>>

ALSO:

Suffrage 125: NZ A Trailblazer For Women

“We acknowledge the work of Kate Sheppard, Meri Te Tai Mangakāhia, and all of the suffragists who tirelessly campaigned for the vote… Today we also need to ask each other: how we can continue to make our country a fairer and better place to continue the legacy of the suffragists.” More>>

ALSO:

Asylum: Refugee Quota Increasing To 1500

“The quota increase will take place from July 2020. In the meantime, we will work to increase the number and spread of refugee resettlement and support services. We need to make sure we’re prepared for this change in policy.” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels