Review of wholesale market competition

Inefficient price discrimination in the wholesale electricity market - issues and options

Upcoming Open Closed Decision
View submissions Submissions closed 22 December 2021
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Consultation

One of the observations made in our Review of structure, conduct and performance in the wholesale electricity market was that the New Zealand Aluminium Smelter was offered a low electricity price to encourage it to stay. This may have resulted in other consumers having to pay a higher price.

In response, we published the Inefficient price discrimination in the wholesale electricity market – Issues and options discussion paper. From 27 October to 22 December 2021, we consulted with interested parties on this discussion paper to seek feedback on whether regulatory interventions are required to mitigate efficiency concerns. Thanks to all those who made a submission.

Decision

In August 2022, we decided to make an urgent amendment to the Electricity Industry Participation Code to prohibit generators from giving effect to contracts of net 150 MW or more, unless certain conditions are met. From August to September 2022, we consulted on whether this amendment should be made permanent.

Discussion paper

Inefficient price discrimination in the wholesale electricity market - discussion paper

Inefficient price discrimination in the wholesale electricity market - discussion paper

This discussion paper addresses the issues caused by inefficient price discrimination in the wholesale market and suggests eight possible options to address potential problems.

27 October 2021

Supporting documents

Submissions

Download all submissions (.zip)