Auditors pass Authority model after robust testing

PA Consulting Group has certified the Authority’s vectorised Scheduling, Pricing and Dispatch (vSPD) model after undertaking rigorous testing. The vSPD model is the Authority’s clone of the SPD software used in the administration and operation of the New Zealand electricity market, and, as one of the tools in the industry and market monitoring toolbox, is used on a daily basis by the Authority’s Market Performance team.

PA Consulting Group is contracted by the system operator to undertake an independent audit of the SPD software each time a change to the SPD formulation is implemented. The Authority will likewise have vSPD audited each time those SPD formulation changes are implemented in vSPD. Having vSPD audited on exactly the same basis as SPD means that participants and interested stakeholders can be assured that work undertaken with vSPD is just as robust and accurate as that undertaken with SPD.

• Further information about vSPD and the certificate of compliance issued by PA Consulting Group

Authority defers FTR market start by one month to avoid an overlap with pole 3 commissioning

The Authority has decided to delay the FTR market by one month to avoid a possible overlap with pole 3 commissioning.

The decision follows feedback from participants after the Authority proposed a variation to the FTR allocation plan to delay FTRs by one month. The Authority’s concern is that pole 3 testing during the first FTR period 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 FTR manager, Energy Market Services (EMS), consulted with industry on the Authority’s proposal from 8 to 18 March. The five submissions received echoed the Authority’s concern and supported avoiding an overlap between the pole 3 commissioning and the FTR launch. Following feedback, EMS has also revised the FTR calendar, which details the progressive release of FTR periods. In June 2013, July FTRs will be allocated (in 2 auctions). In July, all of August FTRs and half of September FTRs will be allocated. While the Authority wishes to provide as much certainty to prospective FTR participants as possible, if pole 3 commissioning hasn’t ended by the start of June, the Authority will review its decision again.

• Submissions and EMS’s summary of submissions
• FTR calendar

Draft determination of causer of under-frequency event

The system operator has made a draft determination on the causer of the under-frequency event on 26 January 2013.  The determination has been published on WITS and submissions on it should be forwarded to the system operator at market.services@transpower.co.nz by 5pm on Wednesday, 3 April 2013.

Wholesale market information disclosure obligations (clause 13.2) guideline

The Authority is seeking feedback on a proposed guideline to assist participants in applying proposed changes to clause 13.2 of the Code. The proposed changes to clause 13.2 were the subject of a consultation which closed on 21 December 2012. The Authority held a workshop last month for industry participants to assist in the development of the guideline. Consultation on the proposed guideline closes on Tuesday, 7 May 2013.

• Consultation paper

Part 10 implementation project: registry functional specification update

The registry functional specification for the implementation of Part 10 has been updated to address minor operational matters that have been identified during implementation.

• Registry functional specification update (v19A.7)

Part 10 implementation: proposed guideline for metering equipment provider audits

The Authority is seeking feedback on a proposed guideline for metering equipment provider audits. Submissions close at 5pm on Tuesday 7 May 2013.

• Consultation Paper

Call for interest: metering equipment provider auditors

The Authority is calling for interest from parties who wish to become metering equipment provider auditors.  Metering equipment providers are responsible for the compliance of metering installations when the new Part 10 comes into effect on 6 June 2013. To register interest, please email your name and contact details to marketoperations@ea.govt.nz with the subject “Call for Interest: Metering equipment provider auditor” by 5pm, Thursday 4 April 2013. Applications for auditors are expected to open on 9 April 2013 with auditor training and assessment scheduled for late April-early May 2013.

• The Authority’s auditor approval process

Call for nominations for Locational Price Risk Technical Group membership

The Authority is calling for nominations for up to eight members of the Locational Price Risk Technical Group (LPRTG).

The group was established to provide assistance with the Authority’s Locational Price Risk Project, including specialist and technical advice on the detailed design and operation of selected hedge mechanisms.

The Authority seeks nominations from people that have one or more of the following skills or experiences:

• electricity wholesale market trading
• an appreciation of electricity price risk management, and in particular, locational price risk management.

Nominations are being sought due to the expiry of existing members’ terms. Members will be appointed for a period of up to two years depending on the progress of the project. 

Nominations should be emailed to info@ea.govt.nz, with ‘LPRTG nomination’ in the subject line, by 5pm Monday, 8 April 2013.

• Terms of Reference and nomination form

Forum for approved test houses

The Authority is holding a forum for approved test houses on Thursday, 11 April 2013, 9am-5pm at the Abel Tasman Hotel, 169 Willis St, Te Aro, Wellington The forum will discuss the new Part 10, Electrical Safety Amendment Regulations 2012 and calculation of uncertainty.

Those wishing to attend should register by sending their names and company details to conference@ea.govt.nz with 'Approved test house forum’ in the subject line. Registrations close Tuesday, 9 April 2013.

• Agenda

Authority presents at national wind energy conference

The New Zealand Wind Energy Association held its annual conference in Wellington last week with a focus on giving the industry the chance to explore the opportunities and challenges in fulfilling its potential and growing to 20% of New Zealand's electricity generation by 2030. As part of a workshop looking at wind in the electricity system, Authority Chief Executive Carl Hansen gave an overview of the Authority’s regulatory strategy.

• Authority presentation to wind conference

Work programme

The work programme report to 31 December 2012 has been published.

• Work programme report

Current consultations

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.

• Transmission pricing methodology review – issues and proposal consultation

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.

• Under Frequency Management Initiatives and Change to the Procurement Plan

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.

• Loss Factor Methodologies

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.

• Review of advisory group administrative arrangements

Part 10 implementation: transitional Code amendments and minor operational matters

The Authority is consulting on 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 proposed amendments are to ensure the transition will not cause participants to breach the Code. The consultation paper also includes proposed amendments on compliance with the current Part 10 and the new metering arrangements. Started: 20/3/2013. Ending: 10/4/2013, 5pm.

• Part 10 implementation: transitional Code amendments and minor operational matters

Dispatchable demand "go-live" date extension

The Electricity Industry Participation (Dispatchable Demand) Code Amendment 2011 was gazetted on 20 October 2011 with a commencement date of 27 June 2013. In November 2012 the Authority decided to review the design of dispatchable demand with the view of implementing a cheaper and simpler design. That review is nearing a conclusion and a decision is expected to be made in May 2013. Meanwhile the commencement date of 27 June 2013 will not be able to be met and will need to be extended. Started: 8/3/2013. Ending: 17/4/2013, 5pm.

• Dispatchable demand "go-live" date extension

Strategic directions for market development

The Authority is seeking feedback on proposed strategic directions for market development. The strategic directions are intended to further 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 change. Started: 12/3/2013. Ending: 23/4/2013, 5pm.

• Strategic directions for market development

Review of undesirable trading situation provisions

The Authority has reviewed the undesirable trading situation (UTS) provisions in the Code in light of experience with the UTS which occurred on 26 March 2011. The review did not identify a need for any fundamental changes, but has highlighted a number of areas where the Code could be improved. Started: 19/3/2013. Ending 1/5/2013, 5pm.

• Review of undesirable trading situation provisions

Information on the Market - Hedge trading in September-November 2012

The Market Performance team frequently produces interesting graphs and analyses utilising the various industry datasets that are becoming available. I(nformation) on the Market provides an insight into a particular area of focus.

• Hedge trading in September-November 2012