Wholesale Electricity Price ‘Out of Whack with Reality’

Transpower’s latest update identifies the risk of hydro shortage for electricity generation is less than 1 percent but the wholesale electricity price has increased dramatically, out of whack with reality,” says New Zealand First Spokesperson for Energy, Fletcher Tabuteau.

“A proportional increase in wholesale electricity prices is understandable in response to winter demand and the small possibility of a ‘dry winter’.”

“But there is no way that a 100 per cent increase in the cost per megawatt hour over the past week alone can be justified relative to the current risk level.

“Electricity prices have peaked at $200 a megawatt hour in recent days. A year ago, prices were averaging around the $50 mark.

“Where is the Electricity Authority on this?

“We need an inquiry into both wholesale and retail electricity prices and we need it now. Frankly, what we need is an Electricity Authority to come back to the real world and do their job,” says Mr Tabuteau.

https://www.transpower.co.nz/system-operator/security-supply/wholesale-pricing

ENDS

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