National instantaneous reserves market
The Wholesale Advisory Group has recently completed its work assessing the feasibility and desirability of a national instantaneous reserves market by providing its recommendations to the Electricity Authority Board. These recommendations strongly support the implementation of a national market for reserves to further enhance competition in the wholesale electricity market.
The key recommendations were:
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that the Authority should prioritise the national instantaneous reserves market project and progress it as swiftly as possible
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the Authority should progress without delay a joint investigation project with Transpower, both as the system operator and grid owner, to determine the technical requirements, costs and timeframes to implement a national instantaneous reserves market
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once the investigation project has gathered sufficient information to develop a set of high level options and a preferred option, undertake a full consultation process to inform the Authority's final decisions on implementation
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there are several possible paths towards implementation and it may be possible to capture some early benefits by proceeding in a staged manner.
The recommendations paper was tabled and discussed at the Authority Board meeting and the Board noted the contents and approved the recommended further work.
Authority staff will now progress the advisory group recommendations by working closely with Transpower to determine the required activities to implement a national instantaneous reserves market, including options and major design choices, to inform a consultation paper on the matter.
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Call for nominations for Retail Advisory Group (RAG) membership
The Authority is calling for nominations for a member of the Retail Advisory Group (RAG). The Authority is seeking one new member of the RAG following a resignation in May 2013. The membership term is up to two years. The Authority is particularly interested in nominations from people with retailer experience.
The role of the RAG is to provide the Authority with independent advice on the development of the Electricity Industry Participation Code and on market facilitation measures relating to retail matters.
The Authority invites nomination of people who:
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can provide impartial advice
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have a high level of integrity
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possess a sense of public duty
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are highly credible to people within the electricity industry
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are able to speak with a considerable level of authority.
Nominations should be emailed to info@ea.govt.nz, with ‘RAG nomination’ in the subject-line. Nominations are requested by 5.00 pm Friday, 6 September 2013.
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Briefing on dispatchable demand
The Authority confirms it will hold a briefing on dispatchable demand on Monday 26 August 2013, from 1pm-3pm at the Authority’s offices in Wellington. The briefing is to assist parties to understand the dispatchable demand proposal and how to participate in 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 is also interested to engage with those who may be interested in dispatching demand.
If you have not already registered and wish to do so, please email info@ea.govt.nz, with ‘dispatchable demand briefing’ in the subject line, and with the names of the individuals and the organisation wishing to attend.
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Stress test scenarios unchanged for the October-December quarter of 2013
The stress test scenarios previously published on the Authority's website will apply for the October-December 2013 quarter. There is no change from the previous quarter.
The stress testing regime 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 the NZX as the independent registrar appointed by the Authority.
Questions about the stress tests can be directed to info@ea.govt.nz. Please include 'stress test' in the subject line.
• Further information
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Part 10 transition
Registry outage and moratorium on registry updates for customer switches
The registry outage for the Part 10 upgrade is in progress and is scheduled to finish at 7.30pm on Wednesday 21 August 2013. The moratorium on the switching of sites in the registry and the disconnection of vacant properties is in place until midnight on Wednesday 28 August 2013. The Authority has prepared a voluntary agreement for retailers in relation to switching processes over the duration of the moratorium.
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.
Project communications during transition
As noted in last week’s Market Brief, the Authority is holding 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.
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
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Current consultations
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.
Starting: 9/07/2013, Ending: 23/08/ 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.
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.
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.
Starting: 05/08/13; Ending: 17/09/13, 5pm.
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