Dispatchable demand proposed policy statement amendments

The Authority is seeking feedback on proposed amendments to the policy statement that are considered necessary to implement dispatchable demand.

• Dispatchable demand proposed policy statement amendments

Submissions close at 4.00pm on Tuesday 25 March 2014.

Triennial review of the customer compensation scheme payment

The Authority has completed its triennial review of the customer compensation scheme payment and concluded that the amount will remain unchanged at $10.50/ICP/week. This review was required by clause 9.25(2) of the Code.

The customer compensation scheme was established on 1 April 2011 with the primary purpose of improving security of supply by removing the incentives retailers had to call for electricity conservation in order to reduce their exposure to high spot market prices. The scheme also serves to recognise and incentivise voluntary demand reductions by consumers during a security of supply emergency.

The calculation of the payment amount has been determined by multiplying electricity consumption of 273 kWh/week/ICP by a savings rate of 7.8% by a valuation of savings of $0.50/kWh.

• More detail on the calculation, including the spreadsheet of workings

Timeline for exemption consideration

All applications for exemptions are considered by the Authority’s Compliance Committee. Any applications received before 7 March will be considered at the Compliance Committee's meeting on 9 April 2014. Applications received after 7 March will be considered at the following Compliance Committee meeting on 22 May.

The lead-in time prior to each meeting date is to allow time for the application to be reviewed and a recommendation paper prepared for the Committee. If an exemption is urgent, the applicant should contact marketoperations@ea.govt.nz as soon as possible, to discuss the possibility of an alternative process.

The Authority’s new website will be live in March, and will include updated information on applying for exemptions, including the meeting dates for the rest of the year. In the interim, an updated application form can be requested from the market operations team at the email address above.

Metering equipment provider Category 1 inspection reports

Metering equipment providers are required to report the results of their Category 1 inspections to the Authority by 1 April each year under clause 45(8) of Schedule 10.7 of the Code. The new form for annual completion is at the link below.

• New annual prescribed form for MEPs

Please send the reports to marketoperations@ea.govt.nz

Current consultations

Switch process re-engineering – Review of Schedule 11.3

The Authority invites 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.

• Switch process re-engineering paper

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.

• Efficient procurement of extended reserves - second consultation

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.

• TPM: Use of loss and constraint excess to offset transmission charges paper

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.

• Issues paper: Retail data project

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.

• TPM: Beneficiaries-pay working paper

Started: 21/01/2014; Ending: 25/03/2014 5pm