The task force will consider regulation to help independent companies to compete. Photo: 123RF
A new task force is bringing together market regulators to investigate factors behind skyrocketing wholesale electricity prices.
The Energy Competition Task Force has been established by the Electricity Authority and Commerce Commission to improve market performance and put in place measures to help address the current crisis.
Electricity Authority Board chair Anna Kominik said regulation could be used to ensure independent generators and retailers were better able to compete.
The task force had already met and was considering how to enable new generators and independent retailers to enter and better compete in the market, she said.
Kominik said they aimed to provide more options for electricity users.
"Bringing more generation online sooner puts more electricity into the system, which is the best way to protect New Zealanders from fuel shortages in the future," she said.
"The authority is already working on a number of regulatory measures to encourage more competition in the market and manage the electricity price risks. The task force wants to accelerate these benefits. It will also consider other action we and the commission, can take.
"Ultimately, we are looking for ways to strengthen the market and put downward pressure on prices, making sure consumers get a better deal."
Current spot market prices and volatility were primarily related to low hydro lake levels and gas shortages, meaning the system is short of fuel to generate electricity at a time of high winter demand.
Commerce Commission chair Dr John Small said the commission would be working alongside the Electricity Authority on improving the performance of energy markets for the long-term benefit of consumers.
