Consultation on modified design of dispatchable demand

The Authority is seeking feedback on a proposal to amend the Electricity Industry Participation Code 2010 (Code) to implement a modified design of the dispatchable demand regime.  The proposed dispatchable demand regime is expected to enhance competition in the spot market as it allows demand-side participants to compete against generators for dispatch and for setting final prices.  The regime should also enhance the efficiency of the electricity industry for the long-term benefit of consumers.

• Consultation on modified design of dispatchable demand

Submissions period started: 23/07/13; Ending: 03/09/13, 5pm.

Temporary Code amendment on AUFLS block flexibility during Pole 2 commissioning

The Authority Board approved a temporary Code amendment on 3 July 2013 to allow the system operator to adjust AUFLS quantities during Pole 2 commissioning.   The amendment expires on 2 April 2014. The Code amendment is the same as was approved under urgency by the Authority Board in November 2012 for Pole 3 commissioning.   

• The draft code amendment

Code amendments to the new Part 10 metering arrangements

The following Code amendments have been signed and will be gazetted this week:

• Electricity Industry Participation (Metering Arrangements) Code Amendment 2011, Amendment 2013 (No 2)
• Electricity Industry Participation (Metering Arrangements) Code Amendment
• Electricity Industry Participation (Additional Registry Fields) Code Amendment 2012, Amendment 2013 (No 2)

The amendments make a number of changes to Parts 1, 11, and 15, and the new Part 10 of the Code, that are necessary to ensure the new metering arrangements operate as intended.  The three Code amendments all come into force on 29 August 2013, on the same day the new metering arrangements come into force.

• The Code amendments

Part 10 implementation - Registry user acceptance testing

Registry user acceptance testing (UAT) ends at close of business this Friday, 26 July 2013.  UAT participants are requested to provide their final Part 10 UAT report to Simon Morris (simon.morris@assurity.co.nz), the Authority’s Part 10 Test Manger, by close of business Tuesday 30 July 2013.

The Part 10 test registry will be available again on Monday 5 August 2013.  

• The test schedule (UAT Calendar)

Investigation into the Value of Lost Load in New Zealand: report on methodology and key findings

The Authority has been investigating approaches for estimating the value that consumers place on avoiding interruptions to their electricity. This value is referred to as the value of lost load (VOLL).

The Authority has recently completed a study of the VOLL in New Zealand, which was commenced under the former Electricity Commission (the VOLL project). The summary key findings of this study are:

• the VOLL is a range of values that different kinds of electricity consumers consider to be the economic cost of power outages, and a single VOLL figure is an inappropriate measure of the value that New Zealand electricity consumers place on unserved energy
• a survey-based approach can be used to produce robust estimates of the VOLL.

The Authority has prepared a technical report summarising the findings of the VOLL project and describing the research approaches.

• Technical report

The Authority has also prepared a guideline describing a suggested method for surveying VOLL.

• Guideline

The Authority is considering options for applying the findings of the VOLL project and will advise on next steps in due course.

Retail Advisory Group papers

Papers from the 17 July 2013 meeting of the Retail Advisory Group have been published.

• Meeting papers

Review of domestic contracting arrangements

The Authority has published a summary of submissions on the Retail Advisory Group’s issues paper on the review of domestic contracting arrangements.  An additional submission provided by Meridian has also been published.

• Summary of submissions

Review of the options for consumer switching

The Authority has published a summary of submissions on the Retail Advisory Group’s discussion paper: ‘Review of options for promoting retail competition by increasing consumers' propensity to compare and switch retailers’.

• Summary of submissions

Current consultations

Within-island basis risk (WIBR)

The Authority is seeking feedback on a consultation paper ‘Within-island basis risk: proposed approach’ which proposes a multi-point FTR as the preferred approach to assist participants to manage their within-island basis risk. The proposal is based on feedback received from the Locational Price Risk Technical Group and is a key initiative for further enhancing competition in the retail electricity market.

• Within-island basis risk: proposed approach

Started 25/6/2013; Ending 06/8/2013 5pm.

Settlement and prudential security review

The Authority is seeking feedback on a proposal to amend the Code to improve the wholesale market settlement and prudential security system.  The proposed Code amendments are substantially based on the work of the Wholesale Advisory Group, and take into account feedback received from the Settlement and Prudential Security Technical Group.  The proposals in this paper are important for enhancing competition in the retail electricity market.

• Settlement and prudential security review: consultation paper

Started: 18/06/2013; Ending: 20/08/2013, 5pm.

Arrangements to manage a retailer default situation

The Authority is seeking feedback on a proposal to amend the Code to establish arrangements for managing a situation where an electricity retailer does not meet its financial obligations or becomes insolvent (a retailer default situation). The Authority is also proposing to introduce guidelines describing the detailed processes and actions that would be taken if there is a retailer default situation.

• Arrangements to manage a retailer default situation

Started: 18/06/2013, Ending: 20/08/2013, 5pm.

Improving transparency of consumers’ electricity charges

The Retail Advisory Group is undertaking a review of whether there should be more transparency around consumers’ electricity charges. The purpose of the review is to identify and recommend alternatives that promote competition by ensuring consumers have timely access to sufficient information so they can understand their bills, see what is driving price changes and make choices about their retailer.

• Improving transparency of consumers' electricity charges

Started: 9/07/2013, Ending: 20/08/2013, 5pm.

Amendments to the procurement plan

The Authority has published a consultation paper ‘Amendments to the procurement plan’. The majority of the changes proposed by the system operator relate to the multiple frequency keeping provisions in the existing procurement plan.

• Amendments to the procurement plan

Starting: 9/07/2013, Ending: 20/08/ 2013, 5pm.

Aligning forecast and final prices

The Wholesale Advisory Group seeks feedback from interested parties on a discussion paper entitled: ‘Aligning forecast and final prices’. At the request of the Electricity Authority, the Wholesale Advisory Group is reviewing the feasibility, benefits and costs of measures to improve the alignment between forecast and final prices as a way of promoting greater competition.

• Aligning forecast and final prices

Starting: 9/07/2013, Ending:  23/08/2013, 5pm.