Meridian Energy welcomes 'no UTS' decision

Meridian today welcomed the Electricity Authority’s (EA) decision that there was no undesirable trading situation following a price spike in the wholesale electricity market on 2 June 2016.

Meridian’s chief executive Mark Binns welcomed the decision and thanked the Electricity Authority for its prompt investigation.

“It’s good to see the regulator confirming that Meridian worked within the market rules and behaved appropriately,” says Mr Binns.

“Price spikes are a normal function of any working wholesale market here and overseas. Spikes occur to signal scarcity to market participants in periods of high demand, such as cold winter evenings or at times when the country has low rainfall.

“The vast majority of consumers are shielded from wholesale market fluctuations by tariffs with fixed prices. Residential customers who do choose to take spot market exposure with their retailer have had the risks explained to them,” adds Mr Binns.

“While market prices have been relatively benign for quite some time, electricity markets will always experience periods of volatility. The retirement of over 500 MW of gas powered generation in the North Island over the last nine months could well lead to more frequent periods of volatility during high demand periods or times of drought, when there is less energy available from hydro sources.”

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Owen Hackston
Investor Relations Manager
021 246 4772

Claire Shaw
Corporate Communications Manager
021 370 677