New EA Regulations Will Increase Security, Enhance Competition, And Lower Prices

Lodestone Energy is supportive of the Electricity Authority’s Level Playing Field measures released today. These market improvements will increase availability of electricity contracts during the peak period of the day and enhance competition between independent retailers and gentailers.

The regulation to enable access to peak hedges will open the door to transparent price signals to consumers and retailers hoping to manage the evening time period when the electricity grid is most constrained. With solar panels, batteries and electric cars becoming common elements of our energy system, sorting out the peak period is critical for the long-term success of the electricity market.

In addition, Lodestone applauds the Electricity Authority for proactively requiring Generator/Retailers (gentailers) to offer the same contract terms to independent retailers as they do to their own retail operations. This move will ensure consumers are getting access to the very best electricity price available and a wider variety of choice.

Gary Holden, Managing Director of Lodestone Energy, said, “This is a very sensible set of regulations that will improve grid efficiency, enable more solar and battery deployment, and deliver lower prices for consumers. The market has been great at stimulating new investment - it now has to be converting that to real consumer benefits. We believe these measures will go along way to making that happen.”

Holden said the proposal to require gentailers to sell to other retailers on a level playing field with their own retail operations, would immediately lead to consumer confidence in the market.

“Consumers need to know that their retailer has access to power at the best price. Their choice of retailer will then become more about the innovation of their supplier and the service they are receiving. The market has been effective in inviting retail competition over the past 30 years, however, to turn a good market into a great market needs this kind of leadership. The energy transition requires even more innovation than before and it is coming at a time when lower prices, greater efficiency and forward thinking is most welcome.”

Lodestone Energy is the country’s leading new-entrant renewable generator. It has commissioned three utility-scale solar farms in the North Island in the past 18 months, and is currently constructing its fourth farm in Whitianga. Lodestone plans to continue to bring significant new solar projects to market with further sites announced in Dargaville, Manawatu, and Canterbury.

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