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Minister of energy welcomes hedge market

posted Sep 14, 2010, 9:36 PM by ema-1 ema-1
June 2010

"Minister of Energy and Resources Gerry Brownlee has welcomed the announcement today by Energy Hedge on progress in setting up a more liquid electricity hedge market.

A liquid hedge market is an important part of the government's package of electricity reforms, which aim to promote more competition in the electricity market.  A hedge market is particularly important to enable new retailers, including lines businesses, and new generators, to enter the market.

The Minister wrote to the major generator-retailers earlier this year requesting that they set up a liquid electricity hedge market with the following characteristics:
  • Standardised tradable contracts
  • A clearing house (or houses) to act as a counter-party to all trades
  • Low barriers to participation and low transaction costs
  • Market makers (offering buy and sell prices with a maximum spread) to provide liquidity"

Energy Hedge NZ market: http://www.energyhedge.co.nz
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