Meridian fined $17,500

Photo / Mark Mitchell

State-owned electricity generator Meridian Energy has been fined $17,500 by the Electricity Authority's rulings panel for eight breaches of market rules by its retail arm.

The breaches, notified by Vector in 2008 and the Market Administrator in 2009, related to Meridian not accounting for electricity properly, not updating information on the registry and not submitting electricity volumes to the reconciliation manager.

The Electricity Commission sought compensation for affected electricity market participants and a maximum fine of $20,000. However, Meridian settled or started to settle the issues of compensation, so the penalty was the only issue ruled on by the panel.

The penalty sent a signal to the industry that serious rule breaches would not be tolerated.

"The panel also stated that a useful purpose of its decision would be to encourage participants to explore all options available before knowingly deciding to breach a rule and opt out of the reconciliation process in reliance on a different interpretation of the rules," the authority said.

- NZPA