UTS Decision Shows Value Of Market Rules
06 May 2011
UTS Decision Shows Value Of Market Rules And Independent Regulator
Mighty River Power today welcomed the Electricity Authority’s draft decision to correct extreme wholesale electricity prices on 26 March, and to declare an Undesirable Trading Situation (UTS).
Mighty River Power Chief Executive, Doug Heffernan, said the draft decision demonstrated that New Zealand has a strong and independent regulator, which is a positive for consumers, investors and the economy as a whole. If this decision is confirmed, it would prove the strength of existing market rules which have workable provisions to address exceptional circumstances.
“It’s fundamentally important to the integrity of the market that there are mechanisms and a strong regulator to deal with circumstances such as this, which may happen from time to time.
“As participants and investors in the market, everyone needs to have absolute confidence that rules are in place and that someone has the muscle to enforce them. This is of vital importance to the public, electricity consumers and the economic interests of all New Zealanders.
“New Zealand’s electricity market needs to be well-regulated with pricing predictability,” Dr Heffernan said. “The draft decision we’ve seen today indicates that.”
About Mighty River Power
Mighty River Power is a New Zealand electricity company, with a flexible portfolio of electricity generation assets, a strong national retail presence and a focus on domestic generation and international geothermal development opportunities. More than 90% of our generation is from renewable sources. We supply both electricity and thermal energy to major commercial users and have more than 400,000 retail customers in New Zealand with our brands, Mercury Energy, BOSCO Connect and Tiny Mighty Power.