Meridian Energy has asked the Electricity Authority to provide greater clarity around the Electricity Industry’s trading code of conduct for the wholesale market.
This request follows the Electricity Authority’s decision to issue Meridian a warning following an investigation into Meridian’s trading conduct on 2 June, 2016.
Meridian Energy’s Chief Executive Mark Binns said, “While we have already notified the Electricity Authority that we believe its decision was wrong in law, we acknowledge the Code that guides trading practice requires greater clarification.”
Meridian has requested the Authority urgently commence the work necessary to provide greater clarity for the benefit of all market participants.
“In reviewing market trading on 2 June there was a divergence of views. The Electricity Authority’s own investigator could not establish that there had been a breach of the Code, and Meridian had an even clearer view on this, while the Authority’s Board reached a different conclusion,” added Mr Binns.
“It’s entirely possible that a situation similar to 2 June could occur again, where constraints emerge and complex trading situations need to be managed. It’s imperative that participants in the market get better clarity on the Code to ensure better market outcomes.”
Meridian will work closely with the Authority to support any review.