Strategic directions for market development
The Authority is seeking feedback on proposed strategic directions for market development. The strategic directions are intended to explain the Authority’s future focus for market development, and to provide more information about how the Authority might respond to changing circumstances, such as technology developments.
The strategic directions are part of the Authority’s strategic framework and will be incorporated into the Authority’s 2013/14 Statement of Intent.
Feedback to the Authority is due by 5pm on Friday, 12 April 2013.
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One-week consultation – Authority proposes to delay FTRs due to delays in pole 3 commissioning
The Authority has proposed to defer the start of the financial transmission rights (FTR) market by one month to avoid a possible clash between FTR trading and pole 3 commissioning.
Under Transpower’s system test programme for pole 3, testing is expected to be completed by 6 May 2013, which is very close to the first scheduled FTR auction of 22 May. This timing is very tight and a relatively small delay in the pole 3 test programme could result in the auction occurring before parties know whether pole 3 commissioning has been completed.
The Authority considers that any further delays to pole 3 testing would create uncertain and highly unusual market conditions that may dampen trading activity and/or produce unusual or perverse results. The Authority wishes to ensure that FTRs are launched in favourable conditions so that the market can start well and achieve the long-term benefits for consumers that are anticipated to flow from good levels of participation in FTR trading over time. The Authority plans to make a decision on whether to delay the first FTR auction promptly to provide participants with sufficient time to adjust their planning.
Consequently, as required by the Electricity Industry Participation Code (Code), the Authority has proposed a variation to the FTR allocation plan to the FTR manager, EMS, to shift the first FTR auction from May to June 2013, and the first FTR period to be offered from June to July 2013.
Submissions are due by 5pm on Monday, 18 March to EMS. All interested parties are invited to submit. After receiving EMS’s report on submissions, the Authority intends to publish its decision by Tuesday, 26 March 2013.
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Dispatchable demand
The Electricity Industry Participation (Dispatchable Demand) Code Amendment 2011 was gazetted on 20 October 2011 with a start date of 27 June 2013. This date was a placeholder until the Authority and the system operator agreed a start date compatible with system build timeframes. It is proposed to amend the start date of the Dispatchable Demand Code Amendment to 1 May 2014. Submissions close on 17 April 2013.
The Authority and the system operator are nearing the conclusion of an investigation into an alternative dispatchable demand design. Once that assessment is complete, the Authority will decide whether to continue with the original design or to propose the alternative design, which would have an expected ‘go live’ date of 1 May 2014 at the earliest.
The Authority has published a paper to update the industry on the status of dispatchable demand and describe the alternative design option being investigated. Although this paper is not a formal consultation and does not specifically seek submissions, the Authority welcomes feedback on it.
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Dispatch compliance during commissioning and testing: minor Code amendment
The Authority proposes to amend clause 13.82 of the Code to provide for a generator or an ancillary services agent to depart from compliance with a dispatch instruction when following a commissioning or test plan.
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Part 10 implementation: industry user acceptance testing of the registry
Part 10 of the Code establishes the regulatory framework for metering in the New Zealand electricity industry. A new Part 10 is scheduled to come into force on 6 June 2013 and affects the obligations of distributors, traders, test houses, metering equipment owners and metering equipment providers. Significant changes are also required to the electricity registry. Industry user acceptance testing (UAT) of the Part 10 changes to the registry commenced last week and runs to 3 May 2013. Enquiries on UAT can be directed to marketoperations@ea.govt.nz.
The Authority will continue to monitor participants’ readiness for the new Part 10 arrangements through UAT. This will include the quality of the data that is required to be loaded into the registry, as well as the ability of participants to interface with the registry and continue their business operations. |
Part 10 implementation: notice of consultation on transitional Code amendments and minor operational matters
The Authority will be publishing a consultation paper in the next few days, proposing amendments to Part 11 and the new Part 10 of the Code to facilitate participants’ transition to new metering arrangements that are scheduled to come into effect on 6 June 2013.
The transition will be staged, starting with a registry outage from 24 to 29 May 2013. This will cause delays in participant activities for which there are regulated time periods. The proposed transitional amendments are to ensure the transition will not cause participants to breach the Code.
The consultation paper will also include proposed amendments on compliance with the current Part 10 and the new metering arrangements.
Submissions will close at 5pm on Tuesday, 2 April 2013. |
Presentation to Commerce Select Committee
The Authority has published the presentation made by the Chair, Dr Brent Layton and the Chief Executive, Carl Hansen, to Parliament’s Commerce Select Committee last week.
The presentation provides an overview of the Authority’s progress over the last year and gives a description of the market.
The Authority’s view is that competition appears to have strengthened considerably over 2012. There was also very good performance in 2012 regarding security of supply.
The presentation’s appendix includes evidence refuting recent claims by commentators of ‘price gouging ‘in terms of residential electricity prices.
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Third stress test results
Reports on the stress test results for the January-March 2013 quarter have been published.
The stress testing regime (referred to in the Code as Spot Price Risk Disclosure) requires certain participants in the wholesale electricity market to apply a set of standard stress tests to their market position, and report the results to their board and to an independent registrar appointed by the Authority.
Questions about the reports or the stress tests can be directed to info@ea.govt.nz. Please include 'stress test' in the subject line. |
Rulings Panel decision
The Rulings Panel has ruled that ‘Transpower’ in rule 5 of section VI of part F of the Electricity Governance Rules 2003 means Transpower New Zealand Limited (Transpower) in its capacity as grid owner and not Transpower in all its various relevant roles and capacities.
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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. The statistics are as detailed in clause 26 of Schedule 6.1 and 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. |
Call for nominations for Retail Advisory Group and Wholesale Advisory Group members
The terms for three members of the Retail Advisory Group and three members of the Wholesale Advisory Group are due to expire on 31 May 2013. The Authority is calling for nominations for members of these groups, with their terms starting on 1 June 2013 for a two-year period.
Nominations close on Friday 22 March 2013 and should be emailed, with a curriculum vitae for each nominee, to info@ea.govt.nz with ‘Nomination - Retail Advisory Group member’ or ‘Nomination – Wholesale Advisory Group member’ in the subject line. |
Retail Advisory Group: 20 February 2013
Papers for the 20 February 2013 meeting of the Retail Advisory Group have been published.
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Current consultations
Electricity Information Exchange Protocols (EIEPs): decisions and further consultation
The Authority has released a consultation paper to notify participants of the Authority’s decision to confirm a number of revisions to terminology, definitions and field attributes used in the EIEPs. Started: 5/2/2013. Ending: 22/3/2013, 5pm.
Transmission pricing methodology proposal
The Authority is accepting cross-submissions in its transmission pricing methodology proposal consultation. Started: 4/3/2013. Ending:28/3/2013.
Under Frequency Management Initiatives and Change to the Procurement Plan
The Authority has released a consultation paper on the proposed operational changes to the way the system operator manages under-frequency events, and changes to the ancillary services procurement plan, which implements some of the above changes. The paper also seeks views on longer-term initiatives for instantaneous and sustained reserves. Started: 8/2/2013. Ending: 27/3/2013, 5pm.
Loss factor methodologies
The Authority has released a consultation paper on losses of electricity in distribution networks. It contains proposals to publish and monitor updated guidelines on the calculation and the use of loss factors, and to amend the definition of ‘losses’, the use of ‘losses’ and the use of related definitions in the Electricity Industry Participation Code 2010. Started: 19/2/2013. Ending: 16/4/2013, 5pm.
Review of advisory group administrative arrangements
The Authority seeks feedback on a proposal to make a small number of minor amendments to the charter on advisory groups and the advisory group terms of reference. The proposed changes would apply to the Retail Advisory Group, the Wholesale Advisory Group and any future advisory groups that may be established. Started: 5/3/2013. Ending: 16/4/2013, 5pm.
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NZ electricity hedge contracts - 8 March 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 contracts as a standard section of its weekly Market Brief.
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