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Key Developments

[ Last Updated 20 February 2006 ]
Status:Archived

April Very low hydro inflows since January which continue through the winter
 Daily average spot prices range from 4-15c/kWh
 Vigorous retail competition continues
May Hydro storage falls below 2000GWh
 Daily average spot prices range from 4-10c/kWh
June Hydro storage falls below 1500GWh
 Thermal generation running hard and will continue to do so through the winter
 7thGovernment publicly signals "modest" hydro supply risk
8thTwo New Zealand Electricity Market (NZEM) participants ask the Market Surveillance Committee of the NZEM to investigate whether or not an undesirable situation exists
 Daily average spot prices range from 10-29c/kWh
  Electricity demand 4-5% higher than previous June
July16thMarket Surveillance Committee reports that orderly trading in the NZEM was not affected by an undesirable situation during 2001
  MEUG members publicly voice concerns about prices
  Spot market prices reach 41c/kWh
25thCommerce Commission announces it will investigate Genesis Power’s acquisition of On energy North Island customers to ensure that it does not substantially lessen competition
27thMinister of Energy publicly signals increase in hydro supply risk to "moderate" and calls together electricity stakeholders to meet every week until the threat of a shortage has passed
 Transmission security is relaxed to ease constraints in a number of areas
 Government announces electricity conservation campaign with a target 10% savings for 10 weeks and 15% for the public sector
August1stOn energy exits retail market
  Competition for retail customers reduces significantly
13thEnergy Efficiency and Conservation Authority announces an energy audit scheme for commercial and industrial premises
  Hydro storage stabilised at around 1350GWh
 Daily average spot prices fall to 6-10c/kWh by mid August
27thLaunch of a trading market for electricity savings identified by firms
September Daily average spot prices settle between 5-10c/kWh
 Conservation and energy efficiency campaigns have saved over 450GWh of hydro storage
 Hedges start to become available again
10thMinister of Energy announces:
  • that the risk of an electricity crisis is diminished – call for conservation savings eased
  • the Terms of Reference for a Review of the events of the past winter
  • that weekly stakeholder meetings will end.
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