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5. Why Is More Competition in Generation Required?


This Document is Archived


ECNZ Split Market Impact Report

Electricity Reform Transition Unit
[ Last Updated 21 November 2005 ]


The wholesale electricity market has been operating since 1996 and since then there has been some reduction in wholesale electricity prices.

However, generation capacity now exceeds electricity demand significantly and electricity prices should be lower than current levels.

There is presently only limited competition between generators. Splitting ECNZ will remove its dominant influence in the electricity market and increase competition, leading to more efficient pricing which better reflects the balance between supply and demand.


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