Electricity is an everyday commodity that can be bought, sold or traded. The electricity market is the system that enables this and it is traded at a wholesale level in a spot market. This market is run by the Electricity Authority together with a Memorandum of Understanding with the Ministry for Business, Innovation and Employment. Electricity spot prices can vary greatly across trading periods, demand, supply, location and season.
New Zealand's electricity market is split into the following areas:
- administration and market clearing
- distribution and retailing
ERANZ's work focuses on retail.