Some corrections have been made to the connection charges working paper published on Tuesday, 6 May 2014. The corrections are shown in the corrected version. The submission period has been extended. Submissions now close 5pm, 24 June 2014.
Call for nominations for Standing Data Formats Group (SDFG)
The Authority is calling for nominations to fill one vacancy in the SDFG. The Authority will accept nominations for a retailer representative.
The SDFG is the Authority’s technical group that manages changes to the electricity information exchange protocols, which enable the low-cost exchange of standardised information between participants.
Dispatchable demand (DD) is an optional regime that allows wholesale electricity purchasers to participate in the spot market in a similar way as generators and therefore respond more efficiently to wholesale market conditions.
Under the new regime DD parties achieve total certainty about the maximum price they pay on their DD quantities but they cede control of those quantities to the system operator. Consumers of any size can provide DD provided they meet certain metering and dispatch requirements. The DD regime is very flexible as consumers can opt in and out of it as they wish provided they give two-hours notice and they can use their own back-up or emergency generation to comply with dispatch instructions rather than alter their actual consumption levels. From a policy perspective the new regime is expected to introduce greater price competition in the spot market, especially when supply conditions are tight.
Note that the application process involves first applying to the system operator. From 15 May 2014, the DCLS approval process guidelines, application form and checklist will be available on the system operator’s website.
In February 2012, the Authority established the Part 10 implementation project to coordinate the implementation of the new metering arrangements with industry participants. The new metering arrangements required a significant upgrade to the registry, which affected the operations of most participants in the retail market. The new metering arrangements came into effect on 29 August 2013.
To assist with improving the management of implementation projects, the Authority engaged IQANZ to independently review the delivery of the Part 10 implementation project. The review covered the effectiveness of project management and delivery, including the coordination of industry participants’ actions.
The Authority has published the IQANZ report on its website.
Electricity Industry Participation (FTR reconfiguration auctions) Code Amendment 2014 approved and summary of submissions published
The Authority recently consulted on a proposed Code amendment to enable FTR reconfiguration auctions. The Authority received five submissions on the proposed Code amendment. The submitters were unanimous in support of the proposal.
Having considered the submissions, on 7 May 2014 the Authority finalised and approved the Electricity Industry Participation (FTR reconfiguration auctions) Code Amendment 2014 which will come into force on 1 November 2014. The Code amendment will be gazetted on 15 May 2014.
The final Code amendment and Gazette notice will be available on the Authority’s website from 15 May 2014 onwards.
The Authority has published a full summary of submissions received in response to its consultation on the proposed Code amendments.
2014 Financial transmission rights allocation plan approved
Further to the update sent on 29 April 2014, the Authority has reviewed the cost-benefit analysis for the three new FTR hubs and reconfiguration auctions, and has decided to proceed with implementing the 2014 FTR allocation plan as previously scoped.
Reminder to Directors: Disclosure of information about quantity of electricity sold by connected retailers
The Authority reminds directors of distributors that, under section 88 of the Electricity Industry Act 2010 (Act), they must ensure that the distributor discloses the quantity of electricity sold each financial year by connected retailers to customers who are connected to its local network.
The term “connected retailer” is defined in section 77 of the Act. Based on the disclosures made in 2013, only two distributors have a connected retailer.
Distributors must make the disclosures in a statement to the Authority within two months after the end of each financial year. Both the Authority and the distributor must publicise the statement. Under section 73 of the Act, “financial year” means a period of 12 months ending on 31 March.
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. Please check that all information is up-to-date including contact names and details that may have changed.
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.
