The Electricity Commission has identified the small retailer alleged to have triggered a wholesale electricity market freeze by defaulting on a payment last Friday.Three major power companies – Genesis, Contact Energy and Mighty River Power - have l
The Electricity Commission has identified the small retailer alleged to have triggered a wholesale electricity market freeze by defaulting on a payment last Friday.
Three major power companies – Genesis, Contact Energy and Mighty River Power - have lodged breach allegations against NZX in relation to the pay freeze.
In turn, the NZX clearing manager has lodged breach allegations against Auckland-based Pulse Utilities in relation to the alleged non-payment.
It is understood that the payment freeze left Genesis waiting for a payment of about $80m and Mighty River about $50m, with Contact in a similar position.
Smaller power companies were similarly affected.
Both Genesis and Mighty River Power have said that they believe the payments should still have gone through on Friday - default or no default – and want to ensure that a similar event will not happen again.
Pulse Utilities has denied that it defaulted on a payment and said, in any case, NZX rules "provide for liquid prudential requirements to cover this type of situation".
"We have consistently paid for our electricity early," chief executive Dene Biddlecome said in a release.
"The fact that Pulse Energy should be mentioned as even remotely responsible for the failure of the entire electricity payment system is typical of the bullying that Pulse Energy continually faces as a new entrant to market.”
All breach allegations will be investigated by the Electricity Commission.
Electricity Commission chair David Caygill told NBR that today’s news release was motivated by a desire to clear speculation around the event.
"At this time, there is no reason to be concerned about the ongoing integrity of market settlement," he said.
NZX has said that it will not be commenting on the issue, in accordance with its service provider agreement.
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