Market Brief

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

Forum for Retail Data project


The Authority intends holding a forum in Wellington on Thursday 27 March 2014 on the Retail Data project. The purpose of the forum is to discuss feedback on the Issues paper the Authority released on 28 January 2014. People interested in attending the forum should email their name and contact details to info@ea.govt.nz with ‘Retail data forum’ in the subject line. The agenda, location and confirmation of the start time will be advised closer to the time of the forum.

Transmission pricing methodology: Residual charge working paper


The Authority is drafting a working paper on options for a residual charge under the Transmission Pricing Methodology (TPM). A residual charge (or charges) would recover Transpower’s costs that cannot be recovered by more efficient charging methods, such as market-based or beneficiaries-pay.  The development of the TPM residual charge working paper has been delayed to allow further consideration and modelling of options for a residual charge. A new target release date will be identified once this work is closer to completion. The Authority had previously indicated that it would release the residual charge working paper during February 2014.

Retail Advisory Group papers


Papers from the 12 February 2014 meeting of the Retail Advisory Group have been published.

Reminder for nominations for Standing Data Formats Group


The Authority is calling for nominations to fill two vacancies in the Standing Data Formats Group (SDFG). The Authority is accepting nominations for two 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.

Current consultations

 

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
 

TPM: Use of loss and constraint excess (LCE) to offset transmission charges

As part of its review of the 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 the second issues paper, which is due to be released in the second half of 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
 

TPM: 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, due to be released in the second half of 2014. Started: 21/01/2014; Ending: 25/03/2014 5pm
 

NZ electricity hedge contract - 14 February 2013


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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