Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Declare Power Situation An Emergency

The Market Surveillance Committee (MSC) must declare an “undesirable situation” in the electricity sector under its emergency powers and take over temporary control of the market, according to the Major Electricity Users Group (MEUG).

Terrence Currie, Chairman of MEUG, said the current crisis was due to a deep-seated market failure, now exacerbated by low hydro inflows and “insanely high” prices.

“The market is too deeply flawed to manage itself out of these extreme conditions.

“It needs a managed market to maximize supply and minimize demand, to reduce the impact on New Zealand’s economy.

“The MSC can declare that an “undesirable situation” exists and step in to fix the problem. The contingency rules were drafted in case circumstances occurred which were beyond the power of the market to deal with. We have that situation right now,” Mr Currie said.

Under New Zealand Electricity Market rules (Rule 2.36), the MSC “may take whatever steps it considers appropriate to correct the situation” in an environment it has declared “undesirable”, or simply if ordered to do so by a “regulatory authority”.

“Running out of water, combined with high prices that are closing down production, is without doubt an undesirable situation. “If we had a more competitive market, we might not have reached this crisis, but the existing market is clearly incapable of dealing with the situation.

“Consumer conservation measures will help reduce demand and extend the amount of time we can hold out in hope for rain and ice melt, but the fundamental market flaws will remain unresolved.

“We are looking to the second summit tomorrow to address these issues in addition to the conservation measures,” Mr Currie said.

ends


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>