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Generators complain after NZX freezes payments

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Aug 25 NZPA - Two electricity generators lodged formal complaints against the NZX after it froze multi-million dollar payments on the electricity trading market.

The New Zealand Herald reported it understood a "glitch" happened on Friday after a small energy retailer failed to make a payment into the system resulting in the NZX -- which manages the clearing system for the electricity market -- freezing payments to all electricity generators.

A spokesman for Genesis Energy said it had filed a notice of breach with the NZX after it failed to pay Genesis a "substantial sum" of money on Friday.

The money, which the Herald understood to be around $80 million, was paid out on Monday.

Mighty River Power chief executive Doug Heffernan said his company had also lodged a notice with the NZX over its clearing system management.

"We think a payment should have gone through rather than being held back," he said.

Mighty River had been expecting to receive around $50m.

The payment failure was unusual and had never happened under the NZX's management before, Mr Heffernan said.

An NZX spokesman said it would not be commenting about the issue, in line with its service provider agreement.

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