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

 

Report shows market performed well in winter 2017

Electricity Authority report shows market performed well in winter 2017

19 June 2018

The Electricity Authority has today released a report on its review of how the electricity market performed during the winter of 2017.

Leading into the winter of 2017 there was extremely low rainfall around our South Island hydro lakes. The low inflows caused storage to fall to its lowest level since 2008. This limited the amount of water available for generators heading into the cold months when electricity demand increases greatly.

The report says that while the electricity supply situation was not as severe as 2008, overall the 2017 winter was managed well.

Electricity Authority Chief Executive Carl Hansen says the report is a good opportunity for the industry to reflect on what worked well and to provide lessons for the future.

“We have a high reliance on hydro-electricity in New Zealand, so when we experience periods of low inflows into our hydro lakes our regulatory and market mechanisms operate under more testing conditions and so it’s useful to review how well they worked.”

“We’re pleased the dry winter conditions were handled with no noticeable impacts and importantly no disruption to consumers. The same occurred in 2012 when there was a moderately dry period over winter.

“But there are always opportunities to learn from these experiences and we can never be complacent when dealing with security of electricity supply,” Mr Hansen says.

The report shows the regulatory and market mechanisms that have been introduced since 2010 to improve security of supply are working well.

There is statistical evidence that storage is now managed more conservatively than in the past.

Mr Hansen says a range of factors have made the market what it is today, enabling it to manage dry winters effectively.

“Probably the greatest contribution to effective management of dry winters has come from the clear rules we have about when any official conservation campaign would be run.

“Measures – such as a customer compensation scheme requiring retailers to make payments to their customers should savings be officially called for, along with a stress testing regime to ensure major electricity users and retailers are aware of the risks they face – seem to have had the desired effect.

“It’s great to see hydro-storage was managed well last year. By conserving water early in the process the electricity system has more options to get through the winter comfortably and there is lower risk of needing to ask consumers to reduce their electricity use.

“There are lessons from the electricity futures market where the difference between the best offer to sell at and the best bid to buy widened over the winter. This widening can reduce the ease with which parties can manage the risks they face and confidence in the reliability of the prices in the electricity futures market.

“Given the hydro circumstances were not as severe as some past events, we will take stock and will be looking at whether further measures are needed to strengthen the electricity futures market,” Mr Hansen says.

The 2017 Winter Review report is available on the Authority’s website.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Transport: International Arrivals In May Lowest In 61 Years

The number of people that arrived in New Zealand in May 2020 was the lowest for any month since May 1959, because of COVID-19-related border and travel restrictions, Stats NZ said today. There were 5,600 arrivals in May 2020 compared with 4,700 in ... More>>

ALSO:

It’s All In The Genomes: New Study Reveals Scale Of Havelock North Campylobacteriosis Outbreak

When the campylobacteria outbreak hit Havelock North in 2016, no-one fully understood how widely it affected the local communities. Gene-sequencing technology used by scientists has shown the true scale of the outbreak. The joint study from ESR, Massey ... More>>

ALSO:

Tiwai Point: Rio Tinto Announces Plans To Close Tiwai Point Smelter

Rio Tinto has just announced that it will wind down New Zealand Aluminium Smelters - the Tiwai Point smelter - saying the business is no longer viable. More>>

ALSO:

Freight: New Report On Auckland Port Relocation

The Government has released a major new report on the options for relocating the Port of Auckland’s freight operations while deferring any decision on the issue. More>>

ALSO:

Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>

ALSO:

XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>

ALSO:

Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>

ALSO:


ASB: Regional Economic Scoreboard Q1 2020

ASB NZ Regional Economic Scoreboard Gisborne still the place to be It has been Gisborne’s year, and the region comes out tops on our regional rankings for the fourth successive quarter. Like everywhere, question marks are about the COVID-19 impact on the future. ... More>>

RNZ: Economic Activity And Business Confidence Bouncing Back

Two surveys from ANZ show business confidence and economic activity have rebounded, but uncertainty about the future remains extreme. More>>

ALSO:

NIWA: The Climate Record That Keeps Getting Broken

Among the multitude of New Zealand climate statistics there is one record that continues to be broken month after month. Since January 2017 there has not been one month that recorded a below average nationwide temperature, according to NIWA’s seven station ... More>>

ALSO:

Govt: Extended Loan Scheme Keeps Business Afloat

Small businesses are getting greater certainty about access to finance with an extension to the interest-free cashflow loan scheme to the end of the year. The Small Business Cashflow Loan Scheme has already been extended once, to 24 July. Revenue and Small ... More>>

ALSO:

Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>

ALSO:

Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>


DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>

ALSO:

New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>

ALSO: