πΌ Electricity Generation
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[0] => The electricity generating industry was an important factor in the growth of New Zealand and its economy, with the government contributing to the development of the electricity infrastructure. Direct state involvement in the generation of electricity began with the appointment of the first chief electrical engineer in 1911, and the commissioning of the first state funded, built, and operated hydro-electric scheme at Lake Coleridge.
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[history] => Electricity production in New Zealand started on a small scale in 1861, with the generation of electricity for the purposes of running a private electric telegraph line between Dunedin and Port Chalmers (with further private electric telegraph lines being constructed between Christchurch and Lyttelton in 1863, and Invercargill and Bluff in 1864). In 1865 the government passed the Electric Telegraph Act, which gave central government a monopoly over the transmission of messages, and provided for state construction, maintenance and regulation of telegraphic communications 1.
The mining industry also had an interest in electricity production, with electricity needed to power the stampers in the mine fields. Some South Island mills were wired for electrical lights, with the Roslyn Mills factory, Dunedin
1884 saw the passing of the Electric Lines Act (that incorporated the earlier Electric Telegraph Act), which extended government control of telegraphic communications to include electric lighting of public places and telephones. The first substantial use of electricity in New Zealand
In 1896, Parliament passed the Electrical Motive-Power Act, which authorised the government to investigate suitable sites for generating hydro-electric power. Interest grew considerably after 1900, leading to the preparation by the Engineer-in-Chief, of the Public Works Department, of a survey of water resources suitable for the generation of power.
By 1900, the government was beginning to look more closely at the possibility of involvement in electricity generation, by means of undertaking larger-scale hydro-electric projects. They had also started to regulate many of the industries related to, or dependent on the use of waterways and electricity (for example the Mining Act 1886, and 1891 amendment, required licenses to be sought for the construction of dams and water races, and the taking of water for use in all types of mining, driving machinery and irrigation. The 1891 amendment also went further, stating that it was illegal for local authorities to transfer or alienate their water rights). There was a clear implication that any development of hydro-electric schemes was to be done by central and local government, rather than private enterprise. The 1882 Public Works Act put control over the water supply into government hands. The government was then able to declare any water supply to be a 'water-race', and then take charge of its use, as they wished to.
The basis for government activity in the field was laid by the Water Power Act 1903, which reserved to the Crown all rights to generate electricity from water power. The act was in effect amended in 1908 however, when the Public Works Act incorporated both the Water Power Act 1903 and the Electrical Motive-Power Act 1896, empowering the government to grant special rights to private users as required. A number of special Acts were passed, granting rights to local authorities and private companies to generate power, but over time opinion favoured state development and operation of hydro-electric resources for public use.
Money to finance the first major project was voted on in 1910 and in 1911 a Chief Electrical Engineer was appointed by the Public Works Department. Work was begun on a hydro-electric scheme on Lake Coleridge , Canterbury
After World War I, a number of stations were built to supply all the main cities, and the areas served was steadily extended. Formal authority to construct and operate hydro-electric stations, and a transmission grid, was formally given in the Public Works Act of 1928. This statute remained the basis of state electricity generation and distribution until the Electricity Act of 1945.
Up to the end of World War II, hydro-electric operations were run by the Hydro-electric Branch of the Public Works Department. In 1946 the department was re-organised, and the responsibility for the generation and transmission of electricity was given to a newly formed department of state, the State Hydro-electric Department. It was re-named the New Zealand Electricity Department in 1958, reflecting the use of thermal and geothermal sources to generate electricity.
The Electricity Department became the Electricity Division, in a new Ministry of Energy, on 1 April 1978; its role was co-ordinating, maintaining and improving the production, transmission and supply of electricity. The Division was also responsible for ensuring standards of safety, efficiency and economy in the production, transmission and supply of electricity, and for advising government departments on all matters affecting electricity.
The mid-1980's saw the government reform the electricity industry. It decided that it would separate the generation and transmission activities from the policy and regulatory functions. As a result, the Electricity Corporation of New Zealand was established on 1 April 1987. This state-owned enterprise owned and operated the generation and transmission assets previously held by the Ministry of Energy, Electricity Division; policy and regulatory activities were retained by the Ministry of Energy (these functions were later inherited by the Ministry of Commerce, Energy and Resources Division - the Ministry of Energy was disestablished in December 1989)4.
The Electricity Amendment Act 1987 came into force on 1 January 1988 and removed the need for the Minister of Energy to approve new hydro generation proposals.
In June 1993 the government established a Wholesale Electricity Market Development Group (WEMDG), which comprised of a range of representatives from interested parties. Some government funding was provided, and two government observers attended. The Group's terms of reference included "the development of specific, cost effective proposals for developing a wholesale electricity market that, consistent with sustainable development, would ensure that wholesale electricity is delivered at the lowest cost to the economy". 5
The WEMDG presented its final report to the government in August 1994 and made the following recommendations 6:
- earliest establishment of competitive wholesale market
- sale of most electricity under long term, tradable contracts
- establishment of a voluntary pool and spot market, operated by a neutral entity
- independent Transpower
- steps to stem ECNZ's dominance, including progressively leasing approximately 40% of ECNZ's plant and constraints on new investments
- levy to promote energy efficiency and conservation
In June 1995, the government announcements on the steps it would take in the lead up to the opening of the wholesale electricity market7:
-
ECNZ to be split into two competing state-owned enterprises (ECNZ and Contact Energy)
-
ECNZ's Maui gas contract to be transferred to Contact Energy
-
ECNZ's proposals for new Taranaki plant to be sold (including associated gas supply)
-
Six small hydro plants owned by ECNZ to be sold
-
Remaining assets of ECNZ and Contact Energy not to be sold
-
special constraints on ECNZ to apply until its market share fell to 45% (cap on building new capacity, ring-fencing new capacity, and high level of firm capacity to be offered by tender for long-term contracts)
-
five year fund of $18 million to support energy efficiency in the energy sector
As a result Contact Energy Limited was established as a state-owned enterprise generator, competing with ECNZ. It commenced operations in February 1996 and took over the former ECNZ's Roxburgh, Clyde, New Plymouth, Wairakei, Ohaaki, Otahuhu, Stratford and Whirinaki power stations. It also took over ECNZ's contracts for Maui gas.
Further reform to electricity generation was announced in April 1998, the government seeking vigorous competition in the electricity sector. ECNZ was to be split into three state-owned enterprises - Huntly and Tongariro; Waikato hydros; Waitaki and Manapouri. Accordingly, ECNZ was split into three competing state-owned generators that began operations on 1 April 1999 8:
-
Genesis Power Limited (inherited the Huntly and Tongariro power stations)
-
Meridian Energy Limited (inherited the Waitaki and Manapouri power stations)
-
Mighty River Power Limited (inherited the Waikato hydro system)
The government sold Contact Energy Limited in 1999.
Principal Legislation
- Public Works Act 1928
- Electricity Act 1945
- Ministry of Energy Act 1977
- State Owned Enterprise Act 1986
- Electricity Amendment Act 1987
- Electricity Act 1992
[1] Martin, John E. (editor), "People, politics & power stations: Electric power generation in New Zealand, 1880 - 1990", p.15
[2] ibid, pp.19-20
[3] ibid p.15
[4] "Chronology of New Zealand Electricity Reforms", Ministry of Economic Development website (www.med.co.nz), accessed 19 November 2007
[5] ibid
[6] ibid
[7] ibid
[8] ibid
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Show History
Electricity production in New Zealand started on a small scale in 1861, with the generation of electricity for the purposes of running a private electric telegraph line between Dunedin and Port Chalmers (with further private electric telegraph lines being constructed between Christchurch and Lyttelton in 1863, and Invercargill and Bluff in 1864). In 1865 the government passed the Electric Telegraph Act, which gave central government a monopoly over the transmission of messages, and provided for state construction, maintenance and regulation of telegraphic communications 1.
The mining industry also had an interest in electricity production, with electricity needed to power the stampers in the mine fields. Some South Island mills were wired for electrical lights, with the Roslyn Mills factory,
1884 saw the passing of the Electric Lines Act (that incorporated the earlier Electric Telegraph Act), which extended government control of telegraphic communications to include electric lighting of public places and telephones. The first substantial use of electricity in
In 1896, Parliament passed the Electrical Motive-Power Act, which authorised the government to investigate suitable sites for generating hydro-electric power. Interest grew considerably after 1900, leading to the preparation by the Engineer-in-Chief, of the Public Works Department, of a survey of water resources suitable for the generation of power.
By 1900, the government was beginning to look more closely at the possibility of involvement in electricity generation, by means of undertaking larger-scale hydro-electric projects. They had also started to regulate many of the industries related to, or dependent on the use of waterways and electricity (for example the Mining Act 1886, and 1891 amendment, required licenses to be sought for the construction of dams and water races, and the taking of water for use in all types of mining, driving machinery and irrigation. The 1891 amendment also went further, stating that it was illegal for local authorities to transfer or alienate their water rights). There was a clear implication that any development of hydro-electric schemes was to be done by central and local government, rather than private enterprise. The 1882 Public Works Act put control over the water supply into government hands. The government was then able to declare any water supply to be a 'water-race', and then take charge of its use, as they wished to.
The basis for government activity in the field was laid by the Water Power Act 1903, which reserved to the Crown all rights to generate electricity from water power. The act was in effect amended in 1908 however, when the Public Works Act incorporated both the Water Power Act 1903 and the Electrical Motive-Power Act 1896, empowering the government to grant special rights to private users as required. A number of special Acts were passed, granting rights to local authorities and private companies to generate power, but over time opinion favoured state development and operation of hydro-electric resources for public use.
Money to finance the first major project was voted on in 1910 and in 1911 a Chief Electrical Engineer was appointed by the Public Works Department. Work was begun on a hydro-electric scheme on
After World War I, a number of stations were built to supply all the main cities, and the areas served was steadily extended. Formal authority to construct and operate hydro-electric stations, and a transmission grid, was formally given in the Public Works Act of 1928. This statute remained the basis of state electricity generation and distribution until the Electricity Act of 1945.
Up to the end of World War II, hydro-electric operations were run by the Hydro-electric Branch of the Public Works Department. In 1946 the department was re-organised, and the responsibility for the generation and transmission of electricity was given to a newly formed department of state, the State Hydro-electric Department. It was re-named the New Zealand Electricity Department in 1958, reflecting the use of thermal and geothermal sources to generate electricity.
The Electricity Department became the Electricity Division, in a new Ministry of Energy, on 1 April 1978; its role was co-ordinating, maintaining and improving the production, transmission and supply of electricity. The Division was also responsible for ensuring standards of safety, efficiency and economy in the production, transmission and supply of electricity, and for advising government departments on all matters affecting electricity.
The mid-1980's saw the government reform the electricity industry. It decided that it would separate the generation and transmission activities from the policy and regulatory functions. As a result, the Electricity Corporation of New Zealand was established on 1 April 1987. This state-owned enterprise owned and operated the generation and transmission assets previously held by the Ministry of Energy, Electricity Division; policy and regulatory activities were retained by the Ministry of Energy (these functions were later inherited by the Ministry of Commerce, Energy and Resources Division - the Ministry of Energy was disestablished in December 1989)4.
The Electricity Amendment Act 1987 came into force on 1 January 1988 and removed the need for the Minister of Energy to approve new hydro generation proposals.
In June 1993 the government established a Wholesale Electricity Market Development Group (WEMDG), which comprised of a range of representatives from interested parties. Some government funding was provided, and two government observers attended. The Group's terms of reference included "the development of specific, cost effective proposals for developing a wholesale electricity market that, consistent with sustainable development, would ensure that wholesale electricity is delivered at the lowest cost to the economy". 5
The WEMDG presented its final report to the government in August 1994 and made the following recommendations 6:
- earliest establishment of competitive wholesale market
- sale of most electricity under long term, tradable contracts
- establishment of a voluntary pool and spot market, operated by a neutral entity
- independent Transpower
- steps to stem ECNZ's dominance, including progressively leasing approximately 40% of ECNZ's plant and constraints on new investments
- levy to promote energy efficiency and conservation
In June 1995, the government announcements on the steps it would take in the lead up to the opening of the wholesale electricity market7:
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ECNZ to be split into two competing state-owned enterprises (ECNZ and Contact Energy)
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ECNZ's Maui gas contract to be transferred to Contact Energy
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ECNZ's proposals for new Taranaki plant to be sold (including associated gas supply)
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Six small hydro plants owned by ECNZ to be sold
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Remaining assets of ECNZ and Contact Energy not to be sold
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special constraints on ECNZ to apply until its market share fell to 45% (cap on building new capacity, ring-fencing new capacity, and high level of firm capacity to be offered by tender for long-term contracts)
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five year fund of $18 million to support energy efficiency in the energy sector
As a result Contact Energy Limited was established as a state-owned enterprise generator, competing with ECNZ. It commenced operations in February 1996 and took over the former ECNZ's Roxburgh, Clyde, New Plymouth, Wairakei, Ohaaki, Otahuhu, Stratford and Whirinaki power stations. It also took over ECNZ's contracts for Maui gas.
Further reform to electricity generation was announced in April 1998, the government seeking vigorous competition in the electricity sector. ECNZ was to be split into three state-owned enterprises - Huntly and Tongariro; Waikato hydros; Waitaki and Manapouri. Accordingly, ECNZ was split into three competing state-owned generators that began operations on 1 April 1999 8:
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Genesis Power Limited (inherited the Huntly and Tongariro power stations)
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Meridian Energy Limited (inherited the Waitaki and Manapouri power stations)
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Mighty River Power Limited (inherited the Waikato hydro system)
The government sold Contact Energy Limited in 1999.
Principal Legislation
- Public Works Act 1928
- Electricity Act 1945
- Ministry of Energy Act 1977
- State Owned Enterprise Act 1986
- Electricity Amendment Act 1987
- Electricity Act 1992
[1] Martin, John E. (editor), "People, politics & power stations: Electric power generation in New Zealand, 1880 - 1990", p.15
[2] ibid, pp.19-20
[3] ibid p.15
[4] "Chronology of New Zealand Electricity Reforms", Ministry of Economic Development website (www.med.co.nz), accessed 19 November 2007
[5] ibid
[6] ibid
[7] ibid
[8] ibid
- π’ Ministry of Energy, Electricity Division, Dunedin District Office (1978 ‑ 1987)
- π’ New Zealand Electricity Department, Christchurch District Office (1946 ‑ 1978)
- π’ Ministry of Energy, Electricity Division, Auckland District Office (1978 ‑ 1987)
- π’ New Zealand Electricity Department, Auckland District Office (1946 ‑ 1978)
- π’ Contact Energy Limited - Hydro, Clyde Power Station (1996 ‑ 1999)
- π’ Contact Energy Limited - Geothermal, Wairakei Power Station (1996 ‑ 1999)
- π’ Contact Energy Limited - Thermal, New Plymouth Power Station (1996 ‑ 1999)
- π’ Contact Energy Limited, Head Office (1996 ‑ 1999)
- π’ Ministry of Energy, Electricity Division, Christchurch District Office (1978 ‑ 1987)
- π’ Ministry of Energy, Electricity Division, Nelson District Office (1978 ‑ 1987)
- π’ Ministry of Energy, Electricity Division, Palmerston North District Office (1978 ‑ 1987)
- π’ Ministry of Energy, Electricity Division, Napier District Office (1978 ‑ 1987)
- π’ Ministry of Energy, Electricity Division, Hamilton District Office (1978 ‑ 1987)
- π’ New Zealand Electricity Department, Dunedin District Office (1946 ‑ 1978)
- π’ Genesis Power Limited (1999 ‑ )
- π’ Mighty River Power Limited, Head Office (1999 ‑ )
- π’ Meridian Energy Limited, Head Office (1999 ‑ )
- π’ New Zealand Electricity Department, Palmerston North District Office (1946 ‑ 1978)
- π’ Electricity Corporation of New Zealand Limited, Head Office (1987 ‑ 1999)
- π’ New Zealand Electricity Department, Head Office (1946 ‑ 1978)
- π’ Ministry of Works and Development, Head Office (1911 ‑ 1946)
- π’ Ministry of Energy - Electricity Division (1978 ‑ 1987)
Show 18 items
- π State Electricity (1957 ‑ 1958)
- π State Hydro-electric Department (1945 ‑ 1957)
- π Electricity (1958 ‑ 1978)
- π Energy (1978 ‑ 1987)