New guide to help consumers manage spot price risk
The Electricity Authority has released a new guide to help consumers understand and better manage the inherent risks of buying electricity at wholesale spot market prices.
Managing electricity price risk: A guide for consumers offers practical information and examples on a range of issues including:
· the different ways of buying electricity
· spot price volatility
· how different options affect exposure to spot price risk
· limiting spot price risk and choosing the appropriate level of exposure
· stress testing as a tool
· what principles should govern choices about risk
· where to get more information or advice on spot price risk issues.
The guide and a summary sheet are available at: www.ea.govt.nz/consumer/guides