Real changes to electricity market might lower prices

Personally, I’m in favour of changes to the electricity sector which facilitate more active market participation by residential users. This would include metering and in-home display options combined with time of use pricing that more accurately reflects the cost of producing electricity at different times of the day. For example, at present, peak loads in most parts of New Zealand occur in winter evenings, meaning electricity is expensive then, as additional thermal generation will probably be used. With the NZ electricity market, all electricity sold at one time is priced at the cost of the most expensive generation. So households are paying for their collective inability to control load, through higher average prices. Load control doesn’t necessarily have to mean energy hardship either. Alternative heating methods, ( eg woodburners, gas) and smart appliances that operate in off peak periods are obvious solutions.