The Electricity Authority is under fire from Labour’s economic development spokesman David Cunliffe for taking electricity companies’ profits into account when deciding how competitive the sector has become.

UPDATED Wednesday: Retailers are angry that national grid operator Transpower has ruled out compensation following yesterday's widespread power outages.

Energy and Resources Minister Gerry Brownlee has appointed five people to the new Electricity Authority board and named the NZIER chief executive as chairman.

The Authority comes into being on November 1, replacing the Electricity Commission under the provisions of the new Electricity Industry Act 2010. It will be responsible for promoting competition, reliable supply and efficient operation of the electricity market for the long-term benefit of consumers.

Vector says a joint project by EnergyHedge and NZX to set up an electricity hedge market is a ‘veneer’.

EnergyHedge and NZX this week announced they were in discussions about setting up an exchange traded and centrally cleared electricity derivatives market.