How do you purchase wholesale power through the EMI website?

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  • Last post 4 weeks ago
jeremypyle posted this 4 weeks ago

Hi everyone,

I'm completely new to this website. How do you purchase wholesale power through the EMI website? Can someone please point me in the right direction. Really appreciate your help

 

 

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Phil Bishop posted this 4 weeks ago

Hi there.

First of all, you can't buy electricity from the wholesale market through the EMI website.

If you really do want to buy direct from the wholesale market, you would first need to become a Participant in the electricity market. See the information provided here to see how the Act defines a Participant and whether or not this is the path you wish to head down. Besides having the ability to purchase direct from the wholesale market (technically speaking you would be purchasing from the clearing manager), being a Participant comes with some obligations that may or may not be what you really want to do - being compliant with the Code is a key obligation on Participants.

If you decide that you really like the idea of buying electricity from the wholesale market but don't want to jump through the hoops of being a Participant, you could seek out a retailer that offers a tariff that looks something like the wholesale price. Presumably they wouldn't offer such a tariff for free so you should expect to pay a margin over the wholesale price - but you may decide that is a lower cost option than becoming a Participant yourself.

Finally, if you are going to subject yourself to the volatility inherent in wholesale electricity prices, whether as a Participant or through a retailer passing along the wholesale price, you would want to think very carefully about a risk management regime. Exposure to the wholesale price can at times be pretty brutal without an appropriate approach to risk management.

Hope this helps to get you started.

Phil

 

 

jeremypyle posted this 4 weeks ago

Hi Phil,

Thanks a lot for all the info. I will read through the links you have posted. In regards to purchasing power is there a minimum limit? For example could you purchase a small amount of power for say only 50 to 100 houses?

Thanks,
Jeremy

Phil Bishop posted this 4 weeks ago

I don't think there is a minimum amount of power that you need to buy. In fact, see here for a list of 13 entities serving the residential sector, each with less than 150 ICPs. But again, as I alluded to above, you need to weigh up the cost of being a Participant with the cost savings you think you can achieve by purchasing directly from the clearing manager.

jeremypyle posted this 4 weeks ago

 Hi Phil,

Okay thanks for sending through. I will make an application to become a Participant and will read through all Act and Code and other information you have provided. Thanks so much for your help in this. Once I have made an application and been approved, how does the actual purchasing work? Is there an online portal for this?


Thanks so much
Jeremy

Ron Beatty posted this 4 weeks ago

Hi Jeremy, we have a lot of information about requirements and obligations when purchasing electricity directly from the electricity market. Email me at ron.beatty@ea.govt.nz and we can have a chat.

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