Weak generation investment threatens supply security

Ratings agency Fitch has said called on the New Zealand government to clarify the regulatory system for the energy sector in order to secure investment in the sector.

In a recent report, Fitch gave a negative outlook for New Zealand energy companies because of a tighter regulatory environment, fast declining gas reserves, and transmission constraints. Aside from declining gas reserves, tardy development of the transmission network has raised concerns of constraints, impeding investment in new generation as companies fear an inability to transport capacity to load centres. The regulatory uncertainty also comes amid rising demand that has cast doubt over the ability to meet future energy needs.