Consultation on extended reserves – draft Code amendment
The Authority is proposing significant changes to the way that participants are required to provide automatic under-frequency load shedding (AUFLS). The amendments would significantly improve the efficiency and reliability of the service because the load would be selected for the service. Under the proposed amendments, AUFLS would be a form of extended reserves. Although AUFLS is currently the only type of extended reserves product, the Authority has adopted the more generic term (i.e. extended reserves) so as to avoid barriers to other products and services in the future.
The Authority has released an extended reserves consultation paper proposing amendments to the Code. The draft Code amendment takes into account feedback provided at a series of workshops the Authority and the system operator held in 2013, and submissions on the second consultation paper released earlier this year on seven different options for procuring extended reserves. The Authority believes the preferred option described in the March 2014 consultation paper remains the most appropriate. However, the submissions have assisted the Authority to refine the detailed design of the proposed approach and update assumptions in the cost-benefit analysis.
If the draft Code amendment progresses, the Authority is targeting finalising the Code amendment by the end of June 2014. There will be a further opportunity for participants to provide input on two documents that support the preferred option: the technical requirements schedule and the selection methodology.
The response paper to the second consultation is attached as supporting information. Submissions on the draft Code amendment consultation are due by 5pm on Tuesday, 20 May 2014.
The Authority and the system operator propose to hold a half-day workshop on the extended reserves consultation on Tuesday 6 May 2014 from 10am to 2pm. The workshop will provide an opportunity for stakeholders to gain a better understanding of the Authority’s proposal.
Please email info@ea.govt.nz by Tuesday 15 April 2014 to indicate whether your organisation would like to attend, and the number of people attending, with “Extended reserves – workshop” in the subject line.
Review of barriers to group-switching and mass-market aggregation
The Retail Advisory Group (RAG) has published a discussion paper on the ‘Review of barriers to group-switching and mass-market aggregation’.
The purpose of the project is to identify any regulatory barriers that may be limiting group switching activities, and to identify ways to remove barriers in order to facilitate enhanced retail competition.
Consultation on more standardisation of use-of-system agreements
The Authority is seeking feedback on a proposal to establish a default use-of-system agreement that can be varied by mutual agreement between a distributor and a retailer. The purpose of the proposal is to reduce transaction costs for retailers and distributors, leading to enhanced retail competition across more network areas in New Zealand.
Call for nominations for Security and Reliability Council Chairperson
The Authority is calling for nominations for an independent chairperson of the Security and Reliability Council (SRC). The SRC provides independent advice to the Authority on reliability of supply issues and on the performance of the electricity system and the system operator. The SRC consists of senior members of the New Zealand electricity industry including consumers. The Authority is required to ensure that the members of the SRC have between them appropriate knowledge and experience of the electricity industry to provide advice to the Authority.
The expected term of appointment is three years. The Authority intends to appoint the successful nominee in June 2014.
Nominations and accompanying documents should be emailed to info@ea.govt.nz, with 'Nomination for SRC chairperson' in the subject line by 5pm on Tuesday, 29 April 2014.
Proposed Electricity Industry Participation (Minor Amendments) Code Amendment 2014
The Authority proposes making the above Code amendment, which would make a number of minor amendments to Parts 1, 5, 7, 8, 10, 11, 12, 12A, 13, 14, & 15 of the Code. The Code amendment will be made under section 39(3) of the Electricity Industry Act 2010, so the Authority will not consult on the amendments, or prepare a regulatory statement.
Metering equipment providers (MEPs) 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.
A memo was sent to all MEPs on 2 April 2014 clarifying the requirements for inspections of category 1 metering installations and is available on the Electricity Authority website.
Improving the efficiency of prices in pivotal supplier situations
The Authority is consulting on a proposal to improve the efficiency of prices in pivotal supplier situations. Please note that the deadline for submissions on this consultation paper is the day after Easter weekend.
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 contracts as a standard section of its weekly Market Brief.
