The winter of 2017 was characterised by an extended period of low hydro inflows in the South Island. The Electricity Authority (Authority) has, since its inception, implemented a wide range of measures aimed at incentivising the effective management of low inflow events. The winter of 2017 provided an excellent opportunity to assess the performance of these measures. The review provides some background information then answers the following questions:

  • How did the hedge market perform?
  • How did spot priced residential consumers react?
  • Has there been any change to the relationship between spot price and storage?
  • What was the demand response to high spot prices?
  • How did the security of supply arrangements perform?