The authority said Genesis did not comply with dispatch instructions in respect of its Huntly power station, or immediately advise Transpower why it could not. Photo: RNZ
The Electricity Authority has lodged a formal complaint alleging Genesis did not adequately comply with a request to deliver power into the grid.
It says the company breached the Electricity Industry Participation Code over an incident in January last year and could be liable for a penalty of up to $2 million.
The authority said Genesis did not comply with dispatch instructions in respect of its Huntly power station, or immediately advise Transpower why it could not, on 26 January 2024.
The dispatch instructions are given by Transpower to generators to provide more electricity generation when required.
The authority said compliance with them was critical to maintain the stability, reliability and efficiency of the power system, to ensure sufficient electricity supply to meet demand at all time sand to ensure fair and transparent operations, avoiding the risk of price distortion.
"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 instruction and to communicate with the System Operator if issues arise."
The authority said the reported breach had a moderate level of severity overall but Genesis had a history of alleged non-compliance.
"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 to 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 complaint will be assessed by the rulings panel, which as the power to make remedial orders.
Remedial orders include pecuniary penalties, compliance orders, compensation orders, and private and public warnings or reprimands.
The liability limit applying to industry participants is a pecuniary penalty not exceeding $2 million and a further amount not exceeding $10,000 for every day or part of a day during which the breach continues.
In a statement, Genesis said it endeavoured to comply with the Electricity Industry Participation Code and had worked closely with the Electricity Authority regarding the alleged breach.
"While we are disappointed that a complaint has been escalated to the Rulings Panel, we will continue to work through the process to a resolution."
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