Transition arrangements for Part 10 implementation

Part 10 transition commences 16 August 2013

The transition phase of the Part 10 implementation project is scheduled for the two week period from 5.00pm on Friday 16 August 2013 to midnight on Wednesday 28 August 2013.

The criteria for the Part 10 implementation project to enter the transition phase have been met. These criteria are:

1. Favourable registry software audit report
2. Registry UAT signoff from participants
3. No unresolved high severity registry defects and a resolution plan in place for open low severity defects
4. Based on the 26 July 2013 Part 10 participant readiness reports the Authority considers there are no significant risks to the effective operation of the new Part 10 Code.

• Part 10 participant readiness reports

Registry outage and moratorium on registry updates for customer switches

There will be a registry outage from 8.00pm on Friday 16 August to 7.30pm on Wednesday 21 August 2013 while the registry is upgraded to the new Part 10 requirements.  A moratorium on the switching of sites in the registry and the disconnection of vacant properties will be in place from 5.00pm on Friday 16 August to midnight on Wednesday 28 August 2013 while the transition to the new Part 10 registry is in progress.  The Authority has prepared a voluntary agreement for retailers in relation to switching processes over the duration of the moratorium.  

• The agreement and the names of the traders who have signed it

Traders can continue to take on new customers during the moratorium but will not be able to update the registry until after the moratorium has ended.

Notification to the reconciliation manager of metering details at NSPs

Under clauses 10.25 and 10.26 of the new Part 10, details of the metering equipment provider (MEP) and metering certification for metering installations at network supply points (NSPs) will be held in the NSP table maintained by the reconciliation manager and published on the Authority’s website.

• Form for providing NSP information to the reconciliation manager

Participants are requested to submit their completed form or data file to rm@nzx.com  by Thursday 22 August 2013 to enable the reconciliation manager to populate the NSP table during transition.

List of Metering Equipment Providers updated

The list of Metering Equipment Providers has been updated.

•  List of Metering Equipment Providers

Project communications during transition

The Authority will hold a daily (business day) teleconference from 12 August – 6 September 2013 to keep participants informed of the progress of the registry upgrade, and to confirm daily transition activities. If you would like to participate in these teleconferences and have not received a meeting invitation, please contact bronwyn.christie@ea.govt.nz.

• The Part 10 transition calendar
• A memo explaining participants’ obligations during transition

If you have any questions on Part 10 transition, please contact Lori Martin, the Authority’s Part 10 project manager lori.martin@ea.govt.nz

Potential briefing on dispatchable demand

The Authority seeks expressions of interest from anyone wishing to attend a briefing on dispatchable demand. The Authority is currently consulting on proposed Code amendments to modify the dispatchable demand regime with submissions due by 3 September. The Authority has also been finding out what information is required by those who may be interested in dispatching demand.

The Authority proposes to hold a briefing to assist parties to understand the dispatchable demand proposal and how to participate in dispatchable demand. The event is likely to be held between 21 and 27 August. The date, format and location will be determined based on registrations of interest for the event.

If you are interested in attending this briefing, please email info@ea.govt.nz by 5pm on Thursday 15 August 2013, with ‘dispatchable demand briefing’ in the subject line, and with the names of the individuals and the organisation wishing to attend.

Distributed generation: statistics

The distributed generation statistics for 2012 have been updated and now include two submissions not received prior to the 30 April 2013 deadline.  

The information reported for the 2012 calendar year now shows a net increase of 490 connections contributing to a net increase of 6.5 MW in the nameplate capacity of distributed generation connected nationwide.

• Summary statistics

Within-island basis risk

On 25 June 2013, the Authority released a consultation paper titled ‘Within-island basis risk: Proposed approach’. The consultation period closed at 5pm on Tuesday 6 August 2013. The Authority received 12 submissions.

• Submissions

New publication on the What’s My Number campaign

The Authority’s second review of consumers’ propensity to compare and switch retailers ‘What’s My Number: competition is key’ has just been released.  More New Zealanders than ever before have shopped around for a better electricity deal, contributing to wider change in the retail electricity market for the benefit of all consumers. The more that people are aware they can easily switch electricity retailers, the stronger the competition among retailers.

• What’s My Number publication

Market performance enquiry into high spring washer price situation of 20 June 2013

The Authority has initiated an enquiry into events on 20 June 2013 which resulted in a high spring washer price situation. On 20 June 2013, the provisional spot electricity price reached $8,336/MWh at Lichfield and $6,523/MWh at Kinleith for trading period 41 (20:00) due to a binding transmission constraint restricting imports into the Tokoroa region.

The nodal price at Lichfield was greater than five times the highest cleared energy offer price and the high spring washer process was invoked to test the sensitivity of nodal prices to the binding transmission constraint limit. The high spring washer process indicated marginal reductions in nodal prices at Lichfield and Kinleith for a 1MW increase in the binding transmission constraint limit. The final price at Lichfield and Kinleith for trading period 41 on 20 June 2013 was $8,318/MWh and $6,510/MWh respectively.

Carter Holt Harvey (CHH) has written to the Authority requesting a market performance review to consider the conditions and events leading to this event. The Authority considers that some of the issues raised in CHH’s request warrant further analysis and has initiated this enquiry. A decision whether or not to extend this to a market performance review will be made following the results of the market performance enquiry..

• High spring washer price situation of 20 June 2013

Current consultations

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.

Modified design of dispatchable demand

The Authority is seeking feedback on a proposal to amend the Electricity Participation Code 2010 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.

• Modified design of dispatchable demand

Starting: 23/07/13; Ending: 03/09/13, 5pm.

Removal of the in-band frequency keeping constrained on and off compensation

The current method for selecting the frequency keeper does not always allow the lowest priced provider or providers to be selected. The Authority is proposing a Code amendment to address this issue.

• Removal of the in-band frequency keeping constrained on and off compensation

Starting: 05/08/13; Ending: 17/09/13, 5pm.

‘I’ on the market: Prices at Tekapo and Albury

The Market Performance team frequently produces graphs and analyses of interest utilising the various industry datasets that are becoming available. ‘I’nformation on the Market provides an insight into a particular area of focus.  This week’s 'I' on the market focuses on prices at Tekapo and Albury in early August.

• Information on the Market #15 - Prices at Tekapo and Albury