Wednesday , October 5 2022

Genesis says there is no agreement between the generator


Genesis says there is no agreement between a generator as a flood
hydroelectric power plants

Gavin Evans

November 9 (BusinessDesk) –
Genesis Energi says recent stress in wholesale
The electricity market does not mean that the main producers have
confronted with the rest of the sector.

Small scale
Flick Electric, Pulse Energi, Vocus Group and
Electric Kiwi complained to Elektroprivredi
and sought the declaration of an unwelcome commercial situation
which they say are caused by the way of the biggest players
the market works on the futures market

Genesis, the largest electricity in the country
and gas seller, together with Contact Energi, Meridian Energi
and Mercuri NZ, acts as a marketing power producer
the futures market. The difference between the purchase price or
sell electricity in the future on this market
keep within 5 percentage points.

They are widespread
in the last few months, making life difficult
independent electricity traders who do not have the power
their stations and rely on future contracts
manages the risk of future electricity prices

They claim that market failure
in the futures market and the failure of timely detection
On supplying fuel they are in a disadvantage and shaken
trust in the market. The prices of the spots were also
"Atypical" high for market conditions, those
let's say.

The combination of low levels of water lake and
natural gas disruptions have led to instability and
Recent prices of electricity in recent times

However, both Genesis and Meridian both reported strong
the inflow of water into the hydrocentral basins of the southern island,
with the water levels of the river entering Vaitaki
basin at the highest levels visible in more than five
During the past day. High electricity prices,
while still high, they fall in response.

She had
there were some increased flows in Clutha Contact Energi
basin, but "nothing unusual for this time of year"
the company said.

Genesis said that with limited fuel
supply, its ability to support future prices

"However, without substance
suggest that the last bad market conditions and challenges
Some experienced retailers are products a
coordinated practice of market power greater
retailers, "Genesis said in a statement via email.

"Improving this should also be considered
the characteristics of the market on which all generators make
contribution. "

Electricity prices jumped in late September
The level of the Lake of the South Island fell and Shell closed production
oil part of the gas field Pohokura due to mistake
on the production platform.

These factors, in combination with
very poor wind production for a few days and another temporary
generation generations, average wholesale prices have been overcome
$ 500 / MVh in some days in October – at most in seven

However, heavy South Island rain is lower
Electricity prices came too late for the Dunedin Pailess Energy,
who sold his book to Pioneer Energi. Other
small retailers also stopped taking new customers and
others can still close. Some, like Flick, are building buyers
base for several years of stable, low wholesale prices,
which was due to the combination of low demand growth,
excess production capacity and enough water and gas

November's prices for the Ottomans have reached the peak
$ 333.50 / MVh, but it fell to $ 190 yesterday. December
contract fell to $ 145 yesterday. Shell has an aim
restore complete production from Pohokura to the end

Genesis, which buys all gases from the Cup
a field that owns parts, says he would like to see more
transparency in the wholesale electricity market and
improved transparency over the breakdown of gas production.

it says this is an inherent feature of New Zealand
hydro-dependent power system with unfavorable weather conditions
from time to time affect the market. It never was
significant gas failure simultaneously with the lower lake

"Everybody is in charge of all companies
market, to understand the risks inherent in the operation
act wisely and take the necessary steps to manage them
risks for their customers and business. The
electricity is nothing else. "

The author said
considers the seller's request for a declaration
unwanted trading situations.

Last month
the regulator said to monitor the performance of the spots
and wholesale markets during what he called
"Double stroke" of reducing storage and limited gas

Although it was worried about the spread of the price
on the ASKS futures market, it was noticed that these effects were
"Probably they were relaxed, to varying degrees, by the side
customers who pre-buy the hedge cover. "

The authority to act on the UTS must be convinced that it is
the event he complained poses a serious risk to integrity
market or trust in it. There should also be no other
a mechanism to solve this problem.

There were eight UTSs
claims in the past decade. Only one of them was
confirmed, which was in March 2011 when prices jumped
$ 20,000 / MVh in parts of the North Island after planning
work on the transmission reduces the power available to Auckland.

that authority was said, while Genesis Energi had it
they set very high prices for their product from the Huntli plant
weekend, participants could not predict these prices
would be stuck on a combination of wrong demand
forecasts and unexpected withdrawal from Energi's Contact
generation at Stratford.

The author decided
cover the prices of that day at an even higher price
$ 3,000 / MVh to reflect where prices could be solved
users could reduce demand if they saw the risk
are coming.

It was recorded at that time that, if it existed
the actual lack of electricity, he would probably allow it


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