Market Brief

4 February 2014
Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.
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Contents

Call for nominations for Standing Data Formats Group (SDFG)


The Authority is calling for nominations to fill two vacancies in the Standing Data Formats Group (SDFG). The Authority will accept nominations for retailer, distributor, or metering equipment provider representatives.

The SDFG is the Authority technical group that manages changes to the electricity information exchange protocols, which enable the low-cost exchange of standardised information between participants. Nominations with ‘Nomination for SDFG’ in the subject line should be emailed to marketoperations@ea.govt.nz by 5.00pm on Friday 21 February 2014.

Quarterly disconnection statistics


The Authority has released the disconnection statistics for the fourth quarter of 2013.

Reminder: Participant registration and information update


The Authority reminds participants that it is their responsibility to register with the Authority as a participant, and ensure the information they provide for registration is up to date.

Failure to register or to update information is an offence under section 31 of the Electricity Industry Act 2010.

Current consultations


Consultation on FTR settlement in event of a delay to final prices

The Authority is consulting on changes to the clearing manager invoices to:  
  1. allow flexibility for invoicing timeframes if the publication of final prices is delayed
  2. 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 the proposed amendment is to improve the efficiency of the process for switching ICPs between traders. Started: 20/12/2013; Ending: 28/02/2014 5pm
 

Efficient procurement of extended reserves - second consultation

The Authority is seeking feedback on a proposal to introduce an approach whereby the system operator ‘procures’ automatic 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. Started: 21/01/2014; Ending: 04/03/2014 5pm
 

Transmission Pricing Methodology: Use of loss and constraint excess (LCE) to offset transmission charges

As part of its review of the Transmission Pricing Methodology (TPM) in the Code, the Authority is developing its response to submissions and cross submissions in relation to the consultation paper ‘Transmission Pricing Methodology: issues and proposal’ dated 10 October 2012 and to points raised in the May 2013 TPM conference.

The Authority has prepared the ‘Use of LCE to offset transmission charges’ working paper to explore some submitters’ suggestions that the proposed use of LCE to offset transmission charges would distort the otherwise efficient wholesale market signals. This working paper will inform a second issues paper, which is due to be released in 2014. Started: 21/01/2014; Ending: 04/03/2014 5pm
 

Issues paper: Retail data project

The Authority is seeking feedback on issues relating to incomplete retail data and the lack of widespread confidence that the retail market is competitive and delivering benefits to consumers. Feedback is also sought on the preliminary options that might address the issues identified. Started: 28/01/2014; Ending: 11/03/2014 5pm
 

Transmission Pricing Methodology: Beneficiaries-pay working paper

Also as part of its TPM review, the Authority has prepared the ‘Beneficiaries-pay options’ working paper to examine different options for applying a beneficiaries-pay charge. This working paper will inform the second issues paper, mentioned above, which is due to be released in 2014. Started: 21/01/2014; Ending: 25/03/2014 5pm
 

NZ electricity hedge contract - 31 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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