5. Environmental Issues
ERTU has assessed the likely environmental impacts of the restructuring compared to ECNZ remaining intact. These effects have been considered in the context of spot market behaviour, demand side management, new investment and water management.
ERTU's conclusion is that long term positive benefits for the environment can be expected. In particular, less CO2 emissions and hydro spill are expected. ERTU would also expect that the retail reforms when combined with a spot market where prices are more responsive to supply and demand will result in more opportunity for demand side participation in the market.
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