The Commerce Commission’s decision this week to investigate the electricity market is timely, says Business NZ.
Business NZ Chief Executive Phil O’Reilly says current high electricity spot prices appear to be at odds with storage figures.
“The Electricity Commission says there is adequate storage in the southern lakes in a situation where current inflows combined with thermal, wind and geothermal plant could meet demand even if the lakes were empty.
“It is hard therefore to understand why the spot price of electricity remains at such a high level. Under these circumstances it is not surprising that there would be speculation that generators are profiting at the expense of New Zealand businesses, so an in depth investigation at this time should bring more clarity to the situation.
“With a long hot summer forecast, it is timely to investigate this situation sooner rather than later.”
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