Market Brief

17 June 2014
 

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

 
 

Contents

 
 
 
 
 
 
 

Multiple frequency keeping project – South Island cutover

 
 
The Authority plans to cutover frequency keeping in the South Island to multiple frequency keeping (MFK) on 4 August 2014, which was the date the Authority announced to the industry early in 2013. One of the two incumbent providers of frequency keeping, Meridian Energy, will not be ready to offer MFK until approximately three months after the planned cutover date. Contact Energy is the second provider of frequency keeping in the South Island. It has offered the system operator a pricing proposal that would allow MFK price risk to be managed while Contact Energy is the sole provider during an interim period between August and November 2014.
The Authority invites comments on the pricing proposal to be received by 5pm on Friday, 27 June 2014. Comments should be emailed to submissions@ea.govt.nz with Multiple Frequency Keeping Project in the subject line. For any enquiries, contact Mike Collis.
 
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Information paper on interim arrangements for inter-island reserve sharing

 
 

The Authority has prepared an information paper explaining the changes planned to inter-island reserve sharing arrangements. This is part of the project to implement a national instantaneous reserves market. The planned interim arrangements will utilise the enhanced reserve sharing capabilities of the new High Voltage Direct Current (HVDC) control system to share an increased level of reserve between the North and South Islands. The Authority expects that the costs of providing reserves will be lower as a result of this planned change. 

The Authority invites feedback on the information paper to be received by 20 of July 2014. 

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Code amendment requires high standard of trading conduct

 
 

The Authority Board has approved a Code amendment requiring generators and reserve providers to trade in a manner consistent with a high standard of trading conduct, to improve the efficiency of prices in pivotal supplier situations.

The Code amendment will be effective from 17 July 2014.

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New Security and Reliability Council chairperson appointed

 
 

The Authority has appointed Mike Underhill to chair the Security and Reliability Council (SRC).

Mike Underhill is the Chief Executive of the Energy Efficiency and Conservation Authority (EECA). Mike’s background includes technical, commercial, regulatory, management and governance roles across a broad spectrum of the electricity industry: retail, distribution, establishing Transpower, cogeneration, and the 1992 hydro crisis. Mike has a bachelor’s degree in electrical engineering and a master’s degree in commerce, both from the University of Canterbury.

The SRC provides independent advice to the Authority on the performance of the electricity system and the system operator, and on reliability of supply issues.

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Report against the 2013/14 work programme to 31 March 2014

 
 

The Authority has published its third quarter report against the work programme.

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Case study on the requirement to submit a test plan for control system upgrades

 
 

The Authority has prepared a new case study, which details a situation where Meridian Energy was installing MFK software into its SCADA control system at Benmore, when Benmore’s generation suddenly dropped by 200MW. Meridian Energy had not submitted a test plan to the system operator.

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Hedge declaration certificates due 30 June 2014

 
 

Every participant who submitted hedge information during the year 1 April 2013–31 March 2014 must submit a declaration certificate to the Authority by 30 June 2014. The requirements for these certificates are contained in clause 13.230 of the Code.

Please submit the declaration certificate on company letterhead using the Hedge Disclosure Declaration form to marketoperations@ea.govt.nz.

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RAG meeting papers

 
 

The meeting papers from the Retail Advisory Group meeting on 11 June 2014 are available online. 

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Notice for previous employees of Lake Coleridge Power Station

 
 

Trustpower and the Lake Coleridge community are calling upon former Lake Coleridge Power Station employees, residents of the village, and those with an association with power generation at Lake Coleridge to join the centenary celebrations to be held on 6 and 7 December 2014.

Additional contact details: contact Lyn Nell, Chairperson of the Lake Coleridge Power Station Centenary Committee, on 03 318 6889 or by emailing nell@xtra.co.nz.

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Current consultations

 
 

Transmission Pricing Methodology (TPM): Connection charges working paper

The Authority is consulting on the TPM connection charges working paper.

Started: 06/05/2014; Ending: 24/06/2014 5pm

Normal frequency asset owner performance obligations

The Authority is consulting on normal frequency asset owner performance obligations

Started: 10/06/2014; Ending: 22/07/2014 5pm

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NZ electricity hedge contract – notice of unavailability

 
 


The NZ electricity hedge contract report will not be updated until 1 July 2014. Please contact info@ea.govt.nz if you have any queries.

Existing NZ electricity hedge contracts are still available online.

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