Shares of Mercury (NZE:MCY, ASX:MCY) edged up in recent Friday trade in New Zealand, while Meridian Energy (NZE:MEL, ASX:MEZ) shares were marginally lower, after the country's Electricity Authority proposed the establishment of an emergency reserve scheme to protect against unplanned disconnections for households and businesses in the country.

Organizations that opt in to the scheme would be paid to reduce their demand, or to provide additional generation, during short and rare periods when the demand and supply balance is tight, the regulator said in a statement Friday.

If the regulator decides to proceed with the scheme, implementation will begin in January 2026 with the changes to the Electricity Industry Participation Code taking effect in May 2026.

The authority decided, in principle, to proceed with implementation, which will allow it to do more detailed implementation work with the system operator in parallel with the consultation on the proposed code amendment. It is seeking feedback until Nov. 14.