Skip to main content

A Dispatch Based Pricing Model for the New Zealand Electricity Market

  • Chapter
Electricity Transmission Pricing and Technology

Abstract

The New Zealand electricity sector has been undergoing an evolutionary reform process since 1987 [1]. In that year the central governments’ generation assets were established on a commercial footing as the Electricity Corporation of New Zealand Ltd. (ECNZ) with a national transmission grid company, Trans Power New Zealand Ltd, as a subsidiary. In 1994, Trans Power was completely separated from ECNZ, and both are now operating as independent State Owned Enterprises, on a commercial footing and theoretically independent of political intervention. Local distribution and supply had previously been handled by a relatively large number of local government bodies which have now been corporatised, with varying degrees of privatisation. The sector is now deregulated, so that competitive supply is now, theoretically, available to all consumers1. Entry to the market, both for generators and bulk electricity buyers, has been freed, with the breakup of ECNZ under consideration and a number of new, privately owned, generation facilities already proposed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Similar content being viewed by others

References

  1. J. G. Culy, E. G. Read, and B. Wright. “Structure and Regulation of the New Zealand Electricity Sector.” In R. Gilbert and E. Kahn, editors, International Comparison of Electricity Regulation. Cambridge University Press, (to appear) 1995.

    Google Scholar 

  2. E. G. Read and D. P. M. Sell. “A Framework for Transmission Pricing.” In A. Turner, ed., Principles for Pricing Electricity Transmission, Trans Power New Zealand Ltd., Wellington, 1988.

    Google Scholar 

  3. F. C. Schweppe, M. C. Caramanis, R. D. Tabors and R. E. Bohn. Spot Pricing of Electricity. Kluwer Academic Publishers, Boston, 1988.

    Google Scholar 

  4. M. C. Rosevear and B. J. Ring. “Implementation of Transmission Pricing Using a GAMS Model.” Proceedings of the Operational Research Society of New Zealand, pp. 159–165, Christchurch, August 1992.

    Google Scholar 

  5. W. W. Hogan. “Contract Networks for Electric Power Transmission: Technical Reference.” Energy and Environmental Policy Center, John F. Kennedy School of Government, Harvard University, December 1991.

    Google Scholar 

  6. W. W. Hogan. “Contract Networks for Electric Power Transmission.” Journal of Regulatory Economics, vol. 4, pp. 211–242, 1992.

    Article  Google Scholar 

  7. W. W. Hogan. “Markets in Real Electric Networks Require Reactive Prices.” Energy Journal, vol. 4, no. 3, pp. 171–200, 1993.

    Google Scholar 

  8. M. L. Baughman and S. N. Siddiqi. “Real-time Pricing of Reactive Power: Theory and Case Study Results.” IEEE Transactions of Power Systems, vol. 6, no. 1, pp. 23–29, February 1991.

    Article  Google Scholar 

  9. E. G. Read and B. J. Ring. “Dispatch Based Pricing: Philosophy and Methodology.” Report for Trans Power New Zealand Ltd., December 1994.

    Google Scholar 

  10. B. J. Ring. “Dispatch Based Pricing in Decentralised Power Systems.” Ph.D. thesis, University of Canterbury, Christchurch, New Zealand, Department of Management, 1995 (In preparation).

    Google Scholar 

  11. E. G. Read and B. J. Ring. “Dispatch Based Pricing: Theory and Application.” Report for Trans Power New Zealand Ltd., December 1994.

    Google Scholar 

  12. B.J. Ring and E. G. Read. “Pricing for Reserve Capacity in a Competitive Electricity Market.” Presented to TIMS XXXII, Anchorage, June 1994.

    Google Scholar 

  13. S. A. Smith. “A Linear Programming Model for Real-Time Pricing of Electric Power Service.” Operations Research, vol. 41, no. 3, pp. 470–483, 1993.

    Google Scholar 

  14. C. A. Gross. Power System Analysis. John Wiley and Sons, 1986.

    Google Scholar 

  15. A. J. Wood and B. F. Wollenberg. Power Generation, Control, and Operation. John Wiley and Sons, New York, 1984.

    Google Scholar 

  16. E. G. Read and B. J. Ring. “Dispatch Based Pricing: Technical Reference.” Report for Trans Power New Zealand Ltd., December 1994.

    Google Scholar 

  17. B. J. Ring and E. G. Read. “Pricing of Transmission Constraints in Cyclic Networks.” Report for Trans Power New Zealand Ltd., November 1994.

    Google Scholar 

  18. F. Wu, P. Varaiya, P. Spiller, and S. Oren. “Folk Theorems on Transmission Access: Proofs and Counter Examples.” Working paper PWP-023, Program on Workable Energy Regulation, University of California Energy Institute, Berkeley, October 1994.

    Google Scholar 

  19. B. Stott, O. Alsac, and A. J. Monticelli. “Security Analysis and Optimization.” Proceedings of the IEEE, vol. 75, no. 12, pp. 1623–1644, December 1987.

    Article  Google Scholar 

  20. M. C. Caramanis, R. E. Bohn, and F. C. Schweppe. “System Security Control and Optimal Pricing of Electricity.” Electrical Power and Energy Systems, vol. 9, no. 4, pp. 217–224, October 1987.

    Article  Google Scholar 

  21. R. Miller and A. Turner. “A Spreadsheet Model for Hydro-Thermal-HVDC-Reserve Scheduling.” Trans Power New Zealand Ltd., 1991.

    Google Scholar 

  22. B. J. Ring, E. G. Read, and G. Drayton. “Optimal Pricing for Reserve Electricity Generation Capacity.” Proceedings of the Operational Research Society of New Zealand, pages 84–91, Auckland, August 1993.

    Google Scholar 

  23. W. O. Stadlin. “Economic Allocation of Regulating Margin.” IEEE Transaction on Power Apparatus and Systems, vol. 90, pp. 1776–1781, 1971.

    Article  Google Scholar 

  24. T. J. Scott and E. G. Read. “Single Period Market Response Curves for a Duopolistic Electricity Market.” Proceedings of the Operational Research Society of New Zealand, pp. 151–158, Christchurch, August, 1992.

    Google Scholar 

  25. V. L. Smith. “Can Electric Power — A ‘Natural Monopoly’ — Be Deregulated?” In H. Landberg, ed., Making National Energy Policy, Washington D. C: Resources for the Future, 1993.

    Google Scholar 

  26. M. C. Rosevear, E. G. Read, and N. R. Watson. “Loss Differential System Charging for Reactive Power.” Report for Trans Power New Zealand Ltd., 1992.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 1996 Kluwer Academic Publishers

About this chapter

Cite this chapter

Ring, B.J., Read, E.G. (1996). A Dispatch Based Pricing Model for the New Zealand Electricity Market. In: Einhorn, M., Siddiqi, R. (eds) Electricity Transmission Pricing and Technology. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-1804-7_8

Download citation

  • DOI: https://doi.org/10.1007/978-94-009-1804-7_8

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-7304-2

  • Online ISBN: 978-94-009-1804-7

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics