1 week Ago
The Government has unveiled the terms of reference for its review of the electricity market prompted by the recent energy crisis. Energy prices soared during winter amid record-low hydro-lake levels, a lack of wind and sun, and what was described by the Government as an inadequate supply of natural gas. That contributed to the closure of three North Island mills and the loss of hundreds of jobs .
A review of the sector was announced by the Government in August when Energy Minister Simeon Brown said New Zealand faced the “highest wholesale electricity prices of any of the countries we normally compare ourselves to”. Details of that review were revealed on Friday, though it’s not expected to begin until early next year. The terms of reference say the review will advise how the current market structure, design and rules affect market performance.
It will look at options to improve performance in line with the Government’s expectations that the markets “deliver reliable electricity at lowest possible cost to consumers, including for businesses that compete globally”..
