Consultation about the effect on competition of saves and early win-backs
The Authority is seeking feedback on its proposal to amend the Electricity Industry Participation Code 2010 (Code) to enable retailers to seek protection from the ‘save’ activities of competing retailers. The objective of the proposed amendment is to promote retail market competition by reducing barriers to entry and expansion for new retailers.
The Authority has conducted extensive research to inform the development of the proposed amendment.
Retail Advisory Group recommendation paper published
The Retail Advisory Group’s recommendations on improving transparency of consumers’ electricity charges have been published. The Authority appreciated the detailed analysis undertaken by the RAG and gave considerable thought to the RAG’s recommendations. The Authority has responded to these recommendations by proposing the Code amendments described below (fourth item in Market Brief), so as to alter the industry’s behaviour ahead of any 2015 price announcements.
The Authority has completed the first stage of the retail price check it announced in March 2014. This stage covered three distribution companies and four retailers and examined the communication between the retailers and their customers, as well as media statements made by the parties.
The Authority's proposal for addressing the issues found in this report is presented in the item below regarding the consultation on improving transparency of consumers' electricity charges.
The second stage of this work covers all remaining distributors and retailers. We will publish results of the second stage later in 2014.
Consultation on improving transparency of consumers’ electricity charges
The Authority is seeking feedback on its proposal to amend the Code to improve transparency of consumers’ electricity charges.
The Authority’s proposal would require retailers to provide information to consumers about any price changes in a standard form, so that the nature and reasons for these changes are clearly presented. It is also proposing to require retailers and distributors to consult each other about any media statements relating to changes to consumers' charges in the distributor's area.
The Authority has published a consultation paper which includes the proposed amendments to the Code. The consultation paper also outlines four other options for improving transparency of consumers’ electricity charges.
New Code obligations for dealing with retailer default situations came into force on 16 June 2014. A guideline for managing an event of default, including the key contacts to notify of an event of default, is now published on our website.
Metering installation tests for category 1 metering installations
It has recently come to the Authority’s attention that some authorised test houses (ATHs) may not be performing all the mandatory commissioning tests when certifying category 1 metering installations using the selected component certification method. This memo is a reminder to all relevant participants of the testing requirements and responsibilities for category 1 metering installations.
The Rulings Panel has decided a dispute under clause 8.62(1) of the Code between Meridian Energy Limited (Meridian) and the system operator, relating to the system operator’s determination that Meridian was the ‘causer’ of an under-frequency event that occurred on 1 May 2013.
The Rulings Panel decided there was no causer of the under-frequency event, as the cause of the event remains unknown. In the alternative, if Meridian had caused the event, it was not the ‘causer’ as defined in the Code.
Stephen Peterson, Neal Barclay, Graeme Everett (all existing members) and Phillip Anderson (new member) have been appointed to the Wholesale Advisory Group. The members’ two-year terms will commence on 1 August 2014.
James Munro (existing member), Nick Robinson, James Tipping and Allen Davies (all new members) have been appointed to the Retail Advisory Group. The members’ two year terms will commence on 1 August 2014.
