Update to scarcity pricing settings
Decision
We have decided to amend the Electricity Industry Participation Code 2010 to:
- raise energy scarcity prices
- reduce the number of reserve scarcity blocks
- raise reserve scarcity prices
- raise the default value for controllable load.
The new settings, effective from 17 April 2025, support security of supply in the shoulder season leading up to winter.
We would like to thank everyone who engaged with this consultation. Feedback from submitters has been incorporated into the final decision.
Consultation
This consultation sought feedback on proposed amendments to the Electricity Industry Participation Code to update the scarcity pricing settings.
Our proposed Code amendment aims to:
- better reflect consumer expectations that power cuts should not occur while there is generation capacity available for dispatch
- better reflect the high cost of involuntary demand reduction on consumers and businesses
- improve price signals during periods of potential scarcity to assist with resource coordination and to continue to provide robust signals for investment in flexible capacity.
This update to the scarcity pricing settings is part of our ongoing approach to improve and refine the market settings for security of supply to ensure they are fit-for-purpose, reflect consumer expectations and improve long-term outcomes for consumers.
Submissions
-
Contact Energy3 pages
-
ENA4 pages
-
Genesis2 pages
-
NewPower4 pages
-
Mercury4 pages
-
Meridian3 pages
-
Orion8 pages
-
Vector5 pages
-
Transpower8 pages
-
Wellington Electricity Lines Ltd2 pages