Updated consultation calendar
The Electricity Authority has decided to alter the timing of a number of consultations scheduled for the first half of 2014. Stakeholders highlighted concerns about responding effectively to the number of consultations that were to be released in January, February and March 2014. In response, the Authority is delaying the release of several consultation papers until later in 2014.
The changes include:
- Consultation on more standardisation of use-of-system agreements. This consultation was to start in January 2014 but the paper will now be released in April 2014
- Consultation on the Authority’s response to the findings of the Castalia review of distributors’ pricing methodologies. This consultation was to start in March 2014, but will now begin in July 2014.
- Consultation on the effects of saves and win-backs. This is a new project added to the work programme in November 2013. The Authority will consult on issues and options in March 2014.
There is no change to the timeframes and milestones for the transmission pricing methodology review.
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Consultation on the efficient procurement of extended reserves
The Authority is seeking feedback on a proposal to introduce an approach whereby the system operator ‘procures’ automated under frequency load shedding, or AUFLS, (currently being the only type of ‘extended reserves’) from transmission-connected loads. The proposal seeks to address problems with the existing common obligation approach which results in some inefficient selection of loads for AUFLS.
The proposed approach would result in parties providing different amounts of AUFLS based on their loads’ relative suitability (taking into account interruption cost, potential use as interruptible load within-day shape and within-year 'shape’). A compensation and cost-allocation mechanism is also proposed. It is expected that these proposals would deliver long-term benefits for consumers through improved system reliability, reduced instantaneous reserves and energy costs, and reduced customer load-shedding costs.
Submissions are due by 5 pm on Tuesday, 4 March 2014. |
Consultation on two transmission pricing review working papers
The Authority has released two working papers. The first seeks feedback on options for a beneficiaries-pay charge, and the second seeks use of loss and constraint excess as part of any changes to the transmission pricing methodology (TPM). These working papers will inform a second TPM issues paper, which is due to be released in the second half of 2014.
Submissions on the loss and constraint excess working paper are due by 5pm on Tuesday, 4 March 2014. Submissions on the beneficiaries-pay working paper are due by 5 pm on 25 March 2014. |
Transmission pricing review – beneficiaries-pay working paper forum
The Authority will provide an overview of its beneficiaries-pay working paper at a forum to be held in Wellington on 29 January 2014. The forum is also intended for interested parties to clarify any details of the working paper with the Authority.
The forum will be held at the James Cook Hotel Grand Chancellor, 147 The Terrace, Wellington, starting at 10 am.
People interested in attending should email their name and contact details to info@ea.govt.nz with ‘TPM Forum’ in the subject line. Registrations should be received by the Authority no later than 5pm on Friday 24 January 2014. |
Transmission pricing review – avoided cost of transmission payments for distributed generation
The Authority has published responses to questions received from the Major Electricity Users’ Group on the avoided cost of transmission (ACOT) payments for distributed generation working paper.
Submissions on the ACOT working paper are due by 5pm on Friday 31 January 2014. |
2014/15 Appropriations: release of summary of submissions and report to the Minister
The Authority has consulted on its proposed appropriations and work priorities for 2014/15. Consultation ran from 10 September to 22 October 2013. The Authority has considered the submissions and reported to the Minister of Energy and Resources with its proposed appropriations for 2014/15. The Minister has approved the recommendations and agreed to release the report.
The Authority is seeking to keep its own operating costs constant. The recommended appropriations include an additional $2m in 2014/15, $3m in 2015/16 and $2.5m in 2016/17 for facilitating consumer participation.
Apart from the new funding for facilitating consumer participation, the recommended appropriations are in line with those approved by Cabinet in Budget 2013.
For any questions, please contact the Authority’s Business Planning Manager, Torsten Baker, on (04) 460 8859 or torsten.baker@ea.govt.nz
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Distribution pricing review evaluations
The Authority has published updated evaluations for Powerco and Electra.
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Exemptions
The Authority has granted and gazetted two new exemptions, listed below.
- The Authority has granted AccuCal Limited an exemption (No. 187) from complying with the obligation in clause 4(2)(a) of Schedule 10.7 of the Code.
- The Authority has granted Contact Energy Limited an exemption (No. 191) from complying with the obligation in clause 10.24(c) of the Code.
The full Gazette notices, including reasons for the approval of each, have been published on the exemptions page of the Authority’s website. The exemptions came into force on 10 January 2014.
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Levy reconciliation 2012/13
The Authority has completed the annual levy reconciliation in accordance with the Electricity Industry (Levy of Industry Participants) Regulations 2010.
The reconciled annual levy rates for the 2012/13 financial year were gazetted on 9 January 2014 and are available on the Authority’s website.
Levy invoices and credit notes are due to be issued during January and will be accompanied with the appropriate payment and direct credit details. |
Draft determinations of causers of under-frequency events: 12 November and 5 December 2013
The system operator has made draft determinations on the causers of under-frequency events on 12 November and 5 December 2013. The draft determinations have been published on the Wholesale Trading and Information System (WITS) and the system operator’s website
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Notice of dispute: determination of causer of under-frequency event
Under clause 8.62(2) of the Electricity Industry Participation Code 2010, Meridian Energy Limited (Meridian) has notified the Rulings Panel that it wishes to dispute the system operator's determination, dated 29 November 2013, that Meridian was the causer of an under-frequency event that occurred at 16:58 on 1 May 2013.
The Rulings Panel has acknowledged receipt of the dispute, confirmed that it can hear the dispute, and asked the Authority to publicise the dispute and to make various documents publicly available.
Any participant or other person who considers they have been substantially affected by the disputed determination, and wishes to participate in the resolution of the dispute, must file an application with the Rulings Panel by 5pm on Tuesday, 18 February 2014.
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Market performance enquiries
The Authority has completed two market performance enquiries into:
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Current consultations
Transmission Pricing Methodology: avoided cost of transmission payments for distributed generation
The Authority is consulting on the working paper on avoided cost of transmission payments (ACOT) for distributed generation, which sets out to understand the efficiency implications of any changes to the TPM in relation to ACOT payments.
Started: 19/11/2013; Ending: 31/01/2014 5pm
An operational review of Part 6 of the Code - second consultation
The Authority is undertaking a second consultation on the operational review of Part 6 of the Code. Part 6 relates to the connection of distributed generation. After consideration of the submissions received on the first consultation paper, the Authority has revised a small number of the proposals and now seeks submissions on these revised proposals.
Started: 03/12/2013; Ending: 31/01/2014 5pm
Consultation on FTR settlement in event of a delay to final prices
The Authority is consulting on changes to the clearing manager invoices to:
- allow flexibility for invoicing timeframes if the publication of final prices is delayed
- enable the clearing manager, if it receives revised reconciliation information after issuing invoices, to either prepare revised invoices or seek direction from the Authority, depending on when it receives the revised reconciliation information.
Started: 10/12/2013; Ending: 10/02/2014 5pm
Switch process re-engineering – Review of Schedule 11.3
The Authority has invited submissions on the regulatory statement and proposed amendment, including drafting comments for an amendment to Schedule 11.3 of the Code. The purpose of these proposed amendments is to improve the efficiency of the process for switching ICPs between traders.
Started: 20/12/2013; Ending: 28/02/2014 5pm |
NZ electricity hedge contract - 17 January 2014
 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 contacts as a standard section of its weekly Market Brief.
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