Editing New Zealand electricity market (section)

=== Incidents ===
There have been long-standing concerns about the potential for market abuse under nodal pricing, particularly when the [[Electric power transmission|transmission system]] becomes congested.<ref name="harvey-and-hogan-2000">
{{cite book
 | first1 = Scott M | last1 = Harvey
 | first2 = William W | last2 = Hogan
 | title = Nodal and zonal congestion management and the exercise of market power
 | date = 10 January 2000
 | publisher = John F Kennedy School of Government, Harvard University
 | place = Cambridge, Massachusetts, USA
 | url = http://www.hks.harvard.edu/fs/whogan/zonal_jan10.pdf
 | access-date = 2016-06-10
}}</ref>

[[Genesis Energy Limited|Genesis Energy]] was "net pivotal" north of [[Hamilton, New Zealand|Hamilton]] on 26 March 2011.  The HVAC network was under scheduled maintenance with 2 of 6 220{{nbsp}}kV lines out and 3 of 5 110{{nbsp}}kV lines out, thereby restricting supply from the South Island.  Extreme bids by Genesis Energy sent Auckland spot prices to ${{val|23047}}/MWh (€{{val|15000}}/MWh), these prices later returned $197/MWh (€125/MWh) – a factor of 117×.<ref name="high-court-2012">
{{cite court
 | court = High Court of New Zealand, Wellington
 | year = 2012
 | litigants = Bay of Plenty Energy Limited v The Electricity Authority: HCWN CIV-2011-485-1371 [27 Feb 2012]
 | url = http://www.ea.govt.nz/dmsdocument/12600
 | access-date = 2016-06-10
}}</ref>
The [[Electricity Authority (New Zealand)|Electricity Authority]] declared a UTS (undesirable trading situation) and subsequently dropped the final price to ${{val|3000}}/MWh (€{{val|2000}}/MWh).<ref name="electricity-authority-2011">
{{cite book
 | title = Questions and Answers relating to the Electricity Authority's decision that the events of 26 March 2011 constitute an undesirable trading situation (UTS)
 | year = 2011
 | publisher = New Zealand Electricity Authority
 | place = Wellington, New Zealand
 | url = https://www.ea.govt.nz/dmsdocument/10705
 | access-date = 2016-06-10
}}</ref> The Electricity Authority decision was challenged and the [[High Court of New Zealand]] found in favor of the regulator.<ref name="high-court-2012"/> In its submission, the Electricity Authority stated that "the high interim prices on 26 March 2011, if they are allowed to become final prices {{nowrap|...}} threaten to damage the integrity and reputation of the wholesale market for electricity".<ref name="high-court-2012"/>{{rp|§162}}