Market Brief

5 February 2013
Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.
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Contents

Electricity information exchange protocols: consultation


The electricity information exchange protocols (EIEPs) provide a set of formats that distributors, traders and agents use when electronically exchanging operational business information. In January 2012, the Authority published a consultation paper that proposed a wide range of amendments to the EIEP specifications. Now the Authority has decided to confirm most of the proposals it consulted on and to consult on two specific Code amendment proposals:
  • require compliance with EIEPs 1, 2 and 3 by distributors and traders when they exchange information
  • cease incorporation by reference of certain documents in Part 12A of the Code.
The Authority has developed the proposals with significant input from the Standing Data Formats Group, which reviewed the submissions received from the first consultation and made recommendations to the Authority. Submissions are due by 5pm on Friday, 22 March 2013.

Registration open for FTR market participation


Energy Market Services (EMS), the Authority’s appointed FTR manager, has opened the registration process for those wishing to participate in the new financial transmission rights (FTR) market which is scheduled to start in May 2013. With the launch of the FTR market just four months away, prospective participants are being encouraged to register early to ensure that they are ready for the market start. FTR user training and testing is also occurring soon.  Participants are invited to register for these sessions with EMS and the clearing manager, NZX. EMS will run user training on the FTR manager’s system via two webinar sessions on 27 and 28 February 2013. NZX will run an FTR clearing and settlement training session on 13 March 2013 (9am to 12pm) in Wellington.

EMS is also running participant user acceptance testing from 14 March 2013. Alongside the testing, EMS will run two practice auctions to provide participants with the opportunity to place bids and receive the auction results and a subsequent ‘dummy’ invoice showing how FTR holdings will be settled. The training and user testing is open to all and prospective participants are strongly encouraged to take part.

Distributed generation reporting due by 1 April 2013


The Authority reminds distributors they are required under Part 6 of the Code to report distributed generation statistics to the Authority on or before 1 April 2013. Clause 26 of Schedule 6.1 of the Code specifies the statistics to be reported, all of which relate solely to the 2012 calendar year. Distributors who have nothing to report must still notify the Authority of their nil return. Completed forms, nil returns or any queries on the topic should be directed to marketoperations@ea.govt.nz

Typographical errors in the Code


The copies of Parts 1 and 13 of the Code on the Authority’s website have been amended to correct some errors. The corrections relate to:
  • Amendments to definitions in Part 1 made by the Electricity Industry Participation (Financial Transmission Rights) Code Amendment 2012 and the Electricity Industry Participation (Force Majeure) Code Amendment 2012
  • An amendment to clause 15(e) of Schedule 13.3 made by the Electricity Industry Participation (Demand-side Bidding and Forecasting) Code Amendment 2011.
Anyone who has printed out copies of these Parts of the Code from the website may want to print out new corrected copies.

The Authority apologises for any inconvenience caused.

Appointment of investigators


Southpark Utilities

On 30 January 2013, the Compliance Committee appointed an investigator to investigate a breach of 14.37(1) of the Electricity Industry Participation Code 2010 by Southpark Utilities Limited (Southpark). The clearing manager alleged that Southpark failed to pay the amount of its invoice in cleared funds by 1400 hours on 20 November 2012.

System operator

An investigator has been appointed to investigate a self-reported breach of the Code by the system operator. The breach concerns the system operator’s failure to correctly apply a security constraint causing a high spring washer effect on 11 September 2012.

Discontinued investigation


On 30 January 2013, the Authority decided to discontinue the investigation of the following alleged breaches of the Code by Transpower New Zealand Limited as the grid owner.
  • An alleged breach of rule 6.1 of Technical Code B of Schedule C3 of part C of the Rules, from 1 March 2004 to 31 October 2010.
  • An alleged breach of clause 7.2 of Technical Code B of Schedule 8.3 of the Code, from 1 November 2010 to 31 December 2012.

Developing guidelines for a modified clause 13.2: workshop


The Authority is holding an industry workshop to develop a guideline to assist market participants with understanding the application of a proposed new clause 13.2 in the Code, which covers wholesale market information disclosure requirements.

The workshop will be held at the Authority on Friday, 15 February 2013, starting at 1pm and ending at 3pm. It has been scheduled for the same day as the Regulatory Managers and Consumer Representative meeting.

Anyone wishing to attend the workshop should email conference@ea.govt.nz, with ‘Clause 13.2 Workshop’ in the subject line.

We suggest those intending to take part in the workshop prepare case study examples of situations they wish to have considered. Those who register will be sent a ‘straw man’ guideline later this week.

Transmission pricing methodology review: questions and answers workshop


The Authority is holding a transmission pricing methodology review questions and answers workshop on Thursday, 7 February 2013 at Civic Suites 1 and 2 in the Wellington Town Hall, 111 Wakefield Street, Wellington, starting at 10:30 am.

Current consultations


Transmission pricing methodology review; issues and proposal

The Authority is reviewing the transmission pricing methodology, which specifies the method for Transpower to recover costs of providing transmission services.
Started: 10/10/2012. Ending: 1/3/2013, 5pm.

Proposed Code amendments to the new metering rules and Part 11

The Authority is proposing amendments to the Electricity Industry Participation Code 2010 to address various issues that have been identified in the process of preparing to implement the new metering rules. Started: 17/12/2012. Ending: 15/2/2013, 5pm.

 

NZ electricity hedge contract - 1 February 2013


Information plays an important part in building market confidence and strength.

To assist interested parties in tracking market development, the Authority publishes NZ electricity hedge contacts as a standard section of its weekly Market Brief. 

 
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