General news

Investigation into alleged breach of the Code by South Pacific Energy Limited

  • Code
  • Compliance

On 10 May 2024, the Electricity Authority considered an investigator report into an alleged breach by South Pacific Energy Limited (SPEL) for failure to pay the clearing manager on time (clause 14.31(1)(a) of the Electricity Industry Participation Code 2010) on 20 April 2023.

At this meeting, the Authority also considered a settlement agreed between SPEL and parties to the investigation; Energy Clearing House Limited (as the clearing manager), and Haast Energy Trading Limited.

The Authority decided to:

  1. Approve the settlement under regulation 24(4)(a) of the Electricity Industry (Enforcement) Regulations 2010 (Regulations); and
  2. Issue a strong warning letter to SPEL for the alleged breach of the Code.

The settlement was approved as it provided a process by which SPEL’s settlement payments could be made on time, and there have been no further allegations of non-compliance in respect of late payments. A strong warning letter was issued as a result of SPEL’s compliance history and lack of response to communications from both the clearing manager and the Authority.

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