Electricity Corporation of New Zealand
Encyclopedia
The Electricity Corporation of New Zealand Ltd (ECNZ) is a New Zealand
state-owned enterprise (SOE) formed on 1 April 1987, as a transition entity in the process of deregulating
the New Zealand electricity market
. ECNZ is a residual entity that manages its remaining hedge
and debt
obligations whilst winding up its other activities.
. The first phase of deregulation saw the New Zealand Government corporatise
the NZED and form the state-owned enterprise ECNZ.
was separated from ECNZ and created as an SOE to own and operate the national grid. In 1996, ECNZ was split into two SOEs, ECNZ and Contact Energy
, and on 1 April 1999 ECNZ was split into three electricity generation SOEs:
All three remain in existence, along with Contact Energy
and Transpower.
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
state-owned enterprise (SOE) formed on 1 April 1987, as a transition entity in the process of deregulating
Deregulation
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...
the New Zealand electricity market
New Zealand Electricity Market
New Zealand's electricity market is regulated by the Electricity Industry Participation Code administered by the Electricity Authority . The Authority was established in November 2010 to replace the Electricity Commission and its publication explains how the market works.- Overview :Until 1987,...
. ECNZ is a residual entity that manages its remaining hedge
Hedge (finance)
A hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, many types of...
and debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
obligations whilst winding up its other activities.
Formation
In the 1980s the New Zealand Electricity Department (NZED), a government department, controlled and operated almost all New Zealand electricity generation and operated the electricity transmission gridElectric power transmission
Electric-power transmission is the bulk transfer of electrical energy, from generating power plants to Electrical substations located near demand centers...
. The first phase of deregulation saw the New Zealand Government corporatise
Corporatization
Corporatization refers to the transformation of state assets or agencies into state-owned corporations in order to introduce corporate management techniques to their administration...
the NZED and form the state-owned enterprise ECNZ.
Division
In 1994, TranspowerTranspower New Zealand Limited
Transpower New Zealand Limited is the state-owned enterprise responsible for electric power transmission in New Zealand. Transpower performs two major functions in the New Zealand Electricity Market...
was separated from ECNZ and created as an SOE to own and operate the national grid. In 1996, ECNZ was split into two SOEs, ECNZ and Contact Energy
Contact Energy
Contact Energy Limited is a New Zealand electricity generator, natural gas wholesaler and electricity, natural gas, and LPG retailer.The company is the second-largest electricity generator in New Zealand , generating 24 percent of New Zealand's electricity in the year ending 31 December 2009, and...
, and on 1 April 1999 ECNZ was split into three electricity generation SOEs:
- Meridian EnergyMeridian EnergyMeridian Energy Limited is a New Zealand state-owned electricity generator and retailer. The company generates the largest proportion of New Zealand's electricity, generating 32 percent of the country's electricity in the year ending 31 December 2009, and is the fourth-equal largest retailer, with...
, - Genesis Energy, and
- Mighty River Power.
All three remain in existence, along with Contact Energy
Contact Energy
Contact Energy Limited is a New Zealand electricity generator, natural gas wholesaler and electricity, natural gas, and LPG retailer.The company is the second-largest electricity generator in New Zealand , generating 24 percent of New Zealand's electricity in the year ending 31 December 2009, and...
and Transpower.