A planned coal stockpile at Huntly Power Station has passed a major regulatory hurdle

The Commerce Commission has issued a draft determination, proposing to allow our major power companies to share the cost of the stockpile at Huntly Power Station.

The deal would see a 600-thousand tonne fuel reserve set up for dry winters, with low hydro inflows over the next decade.

The commission says the deal will improve security of supply, and lower wholesale prices, while new capacity in the pipeline comes to market.

It will take feedback from interested parties before making a final decision.

The Government's due to announce its plan for the energy sector tomorrow morning.