17 Mar 2015

New role for NZX in electricity sector

1:51 pm on 17 March 2015

Stock exchange operator NZX will take on a new role in the electricity sector.

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Photo: RNZ / Diego Opatowski

It has been chosen by the Electricity Authority to become what is called the extended reserve manager, responsible for managing the electricity system in the event of a sudden loss of generation.

NZX CEO Tim Bennett said this was a world first and provided an additional level of security to New Zealand's electricity supply.

"The Electricity Authority is putting in place a mechanism to determine what to do if there's a sharp reduction in supply ... [by] managing demand," he said.

Mr Bennett said NZX would be consulting this year with electricity players about how such a system would work, and it would be in place next year.

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