Labour appears to have softened its stance on the newly passed Electricity Industry Bill.

The Electricity Industry Bill recieved another green light last week – but Labour has pledged to repeal the bill once back in power.

The bill contains a suite of electricity sector reforms designed to boost competition, price stability and security of supply.

Reforms include a mandatory electricity hedge market, the return of lines companies to the retail market, a $15m fund to encourage customer switching between retailers, and a “virtual asset swap” of Meridian and Genesis power stations.

Green light

Irrigators are concerned that Meridian Energy may use the Electricity Industry Bill asset swap to renege on previous water allocation concessions.

The bill proposes a transfer of Meridian’s Tekapo A and B hydro power stations to Genesis Energy in exchange for the Whirinaki gas turbine station. The swap is designed to increase electricity market competition.

Meridian Energy surprised a select committee this morning with support for changes to the electricity industry, including asset swaps that would see Genesis Energy taking on two of its hydro power stations in the South Island.

Previously, Meridian has said it would prefer to avoid a physical asset swap and instead focus on financial hedging arrangements.