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Lessons learned from New Zealand’s electricity market

Mr Mike Parker, Transpower New Zealand Limited

In the last twenty years, many countries have split up state-run, vertically integrated and centrally planned electricity supply systems, in order to harness the benefits that competition and markets can offer.

Without successful working models to base their electricity market on, each country has basically run its own experiment. It has become obvious in that time, that whilst markets work well for some aspects of electricity supply, they do not for others. Competitive generation appears to work well, for instance, but not market-driven transmission. Neither will markets deliver security of supply or other public policy objectives.

This presentation will discuss learnings from New Zealand, where the state-run electricity supplier was split into a transmission company and several generation/retailing companies in the 1990’s.

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