Delay to the publication of final prices for 24 June 2010

On 25 June 2010 the Electricity Commission Board ordered the delay to the publication of final prices and final reserve prices for Thursday 24 June 2010. This delay was ordered after the Pricing Manager experienced difficulties in calculating the final prices following the release of the SPD version upgrade to implement one of the winter initiatives (the instantaneous reserve dispatch amendments).

Delay to the publication of final prices for 21 April 2009

On 24 April 2009, the Electricity Commission Board ordered the delay to the publication of final prices and final energy prices for 21 April 2009. This was because of concerns expressed by Contact Energy on the prices for trading periods 37 and 38 relating to the modelling of the constraints to Wilton T8.

Contact Energy has subsequently claimed an Undesirable trading situation in relation to final prices and final reserve prices for 21 April 2009. The Commission has continued the delay to final prices and final reserve prices for the 21 April 2009 so that it can consider the UTS claim.

The reports and a file of the prices that were proposed to be released as final are below.

System Operator report 
Pricing Manager report 
Would-be-final prices for 21 April 2009 

Delay to the publication of final prices for 29 April 2007

On 30 April 2007 the Electricity Commission Board ordered the delay of the publication of final prices and final reserve prices for trading period 37 of 29 April 2007. This was because of unprecedented prices being calculated in the Wellington, Wanganui, Wairarapa and central and lower Hawkes Bay regions.

Update 4 - 1 June 2007

The Electricity Commission has granted an exemption to the pricing manager to allow calculation of the final prices for trading period 37 on 29 April 2007 using the new high spring washer pricing situation methodology.

Prior to granting this exemption the Commission considered the eight submissions below. The Commission briefly commented on the concerns raised in some submissions.

Commission's comments on Pricing Manager exemption submissions

Submissions received:

Contact Energy
Genesis Energy
Major Electricity Users' Group
M-co
M-co 2
Meridian Energy
Norske Skog Tasman
Todd Energy

Update 3 - 21 May 2007

A market participant has requested more detailed information on the likely prices that would result if the exemption were granted. It is recognised that this information might assist those wishing to make a submission.

Comparison of prices

Update 2 - 18 May 2007

The calculated prices were caused by a high spring washer pricing situation. New rules governing the calculation of prices in a high spring washer pricing situation have been gazetted and will come into force on 3 September 2007. Had these rules been in place on 29 April 2007 the prices would have been significantly different.

The Electricity Commission's assessment is that these prices, if published as final, would have a significant impact on some participants. Accordingly, it intends to grant an exemption to the pricing manager to allow prices for trading period 37 on 29 April 2007 to be calculated using the same methodology as that which will apply from 3 September 2007.

Notice of intention to grant exemption to the Pricing Manager - 18 May 2007

Update 1 - 4 May 2007

The Electricity Commission wanted to review these prices and so invoked rule 3.28 of section V of part G of the Electricity Governance Rules (that preceded the Electricity Industry Participation Code) and ordered the delay to the publication of final prices and reserve prices for trading period 37 on 29 April 2007.

Final prices and final reserve prices for all trading periods of 29 April except trading period 37 were published on 30 April 2007. At the same time the prices for trading period 37 were published as provisional prices to give participants an indication of the calculated prices for that period.

Prices for trading period 37 on 29 April 2007

At the request of the Commission the Pricing Manager has provided a report on the inputs and processes used in calculating these prices.

Pricing Manager's report on 29 April 2007 prices

The Pricing Manager was satisfied that final prices for 29 April 2007 as calculated on 30 April 2007 are correct to the extent that:

  1. the pricing process was performed correctly;
  2. there are no infeasibilities in the final pricing solve; and
  3. to the best of its knowledge, the inputs provided under the Rules by other parties which are required to perform the pricing process in accordance with the Rules, were present and correct.

The Pricing Manger concluded that the prices were the result of a spring washer effect caused by the combination of demand, a bipole outage on the HVDC and a binding group constraint.

The System Operator has also confirmed that to the best of its knowledge the model configuration, constraints, dispatch and outages relevant to trading period 37 are correct.

The Commission is aware a prolonged delay in the publication of final prices could affect participants and impact on the settlement process. However, the Commission notes the unprecedented nature of the calculated prices and for this reason has extended the delay period to consider the issue further.

19 June 2005

Electricity Commission report on delay to publication for final prices for 19 June 2006

Delay of publication of final prices for 19 June 2006 Pricing Manager report)

Revised Pricing Manager report (updated 6 July 2006)

Delay of publication of final prices for 19 June 2006 Indicative final prices

31 July 2005

Delay of publication of final prices for 31 July 2005