MEUG welcomes Supplier initiative for hedge marke

MEUG welcomes Supplier initiatives for hedge market

“Announcements by Energyhedge today of a number of initiatives to deepen and bring more product innovation to the electricity financial derivatives (“hedges”) market are very welcome news” said Ralph Matthes, Executive Director of the Major Electricity Users’ Group (MEUG). A more liquid hedge market will improve the ability of wholesale market participants to manage their risk and open up opportunities for new wholesale market participants. A more vibrant wholesale hedge market will assist retailers compete to better meet the needs of retail consumers.

“Energyhedge comprises the five largest electricity suppliers. Those are listed companies Contact Energy and Trustpower and the three SOE’s Genesis Energy, Meridian Energy and Mighty River Power.

“The announcements included advice of a more formal structure for Energyhedge (refer www.energyhedge.co.nz) and a commitment to develop that platform including appointment of Greg Adlam of Carbon Energy Partners to provide market development services. Progress has already commenced with forward contract trading at Otahuhu and Benmore nodes commencing last week in addition to the Haywards node that has been the only node traded at since Energyhedge started 6 years ago.

“MEUG believes the announcements by Minister Brownlee on 9th December for major reforms of the industry have given the industry confidence to advance with these industry led initiatives to improve the hedge market. Energyhedge today noted:

“The company also fully supports the recommendations of the Ministerial Review into Electricity Market Performance relating to the hedge market, and is confident in the ability of EnergyHedge to meet the Government’s targets for the market, as well as increasing overall market turnover.”

“Suppliers have been keeping MEUG informed of these plans and we look forward to working collaboratively to develop a hedge market for the benefit of suppliers and end users” concluded Mr Matthes.

ENDS

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