Authority Welcomes Government Policy Statement On Electricity

The Electricity Authority Te Mana Hiko welcomes the release today of the Government Policy Statement (GPS) on electricity with its particular focus on updating the wholesale electricity market and security of supply, not just for now but also for the future.

"We share the Government’s desire for consumers to have access to an electricity system that is competitive, efficient, secure and resilient. We want an energy system that fosters economic growth and social well-being," says Electricity Authority chief executive Sarah Gillies.

"With significant investment required, the GPS provides a clear signal to the market about the direction of the regulatory environment and the incentives for local and international investment.

"To achieve this, we need a wholesale electricity market that adapts to the rapidly changing needs of all those involved in the system - from the generators of electricity to the end users, and everyone in between.

"We also need to have a reliable and affordable supply of electricity.

"During August there was extreme volatility in wholesale prices due to fuel supply constraints. Since then, wholesale prices have gone as low as $3.29/MWh.

"The GPS is aligned to, and consistent with, the Authority’s re-prioritised work programme and it highlights, among other things, the importance of the Authority’s security of supply work programme, work to progress the Market Development Advisory Group recommendations, and the Energy Competition Task Force measures.

"It is important to note that the GPS is not just for the Electricity Authority but for wholesale electricity market participants too - a whole-of-system approach is vital to achieving our shared goals," said Gillies.

Notes:

The Electricity Authority is an independent Crown Entity with the main statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers. The additional objective of the Authority is to protect the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers.

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