The Electricity Authority has filed a formal complaint, claiming Genesis failed to adequately meet a request to supply power to the grid.
The Electricity Authority claims Genesis breached the Electricity Industry Participation Code during a January 2024 incident, potentially facing a penalty of up to $2 million.
The authority stated Genesis failed to follow dispatch instructions for its Huntly power station or promptly notify Transpower of the reason on 26 January 2024. Transpower issues dispatch instructions to generators to ramp up electricity production when needed.
The authority emphasised that compliance is essential to uphold power system stability, reliability, and efficiency, ensuring constant electricity supply to meet demand while promoting fair, transparent operations and preventing price distortions.
“If generation is suddenly unavailable (for example, through an unexpected outage), this can have a flow-on effect such as a localised cascade failure of the power system and regional loss of supply.”
“The code requires generators to comply with dispatch instructions and to communicate with the system operator if issues arise.”
“There was a potential security impact from a shortage of generation provided due to non-compliance with a dispatch instruction because the shortage of generation may have had an impact on frequency keeping stations at the top end of their frequency keeping band, limiting their capacity to provide frequency keeping services and support in case of an under-frequency event.”
The rulings panel, which has the authority to issue remedial orders, will assess the complaint.
Remedial orders involve pecuniary penalties, compliance orders, compensation orders, and private or public warnings or reprimands. Industry participants face a maximum pecuniary penalty of $2 million, plus up to $10,000 for each day or part-day the breach persists.
Meanwhile, Genesis said it strives to comply with the Electricity Industry Participation Code and has cooperated closely with the Electricity Authority on the alleged breach.