Power cut investigation details announced

The scope of the Government-ordered investigation into the electricity supply issues that left more than 34,000 consumers without power last week has been released by energy and resources minister Megan Woods.

The Monday August 9 cuts prompted all sorts of accusations, especially on social media with some even incorrectly blaming EV charging.

“I have directed the Ministry of Business, Innovation and Employment (MBIE) to carry out an investigation to look into the causes and factors contributing to the interruptions to the power supply on the evening of August 9,” Woods says.

“New Zealanders have a right to expect that on a bitterly cold winter’s night that when they turn on the heater or flick on a light switch that they will be warm and not left in the dark when generation can’t meet demand.

“I want to know why there was not enough generation to meet demand and am seeking recommendations that will reduce the risk of future supply interruption and ensure any demand curtailment is appropriately managed.”

The investigation will consider how pending power interruptions are communicated to consumers, industry, stakeholders and whether the notices issued to market participants can be improved.

“In addition, the investigation will also look at the availability of generation, demand forecasts, security margins and whether existing arrangements deliver appropriate security and reliability,” Woods adds.

Callaghan Innovation chair and former MP Pete Hodgson will lead the investigation, with electricity market and energy sector regulatory specialist Erik Westergaard as technical advisor. MBIE will provide secretariat support.

Transpower, the system operator, is carrying out an internal review of its performance, and the Electricity Authority, the electricity market regulator, is conducting a review under section 16 of the Electricity Industry Act into how the electricity system performed.

The MBIE investigation will not determine any breach of the Electricity Industry Participation Code or other laws, address methods to reduce electricity demand or to encourage generation investment, or consider ownership or institutional governance arrangements in the sector.

The investigation is expected to start on August 19 and a written report provided within six to 10 weeks.

The full terms of reference are available here.