The Authority has released a consultation paper on the level of the liability limit for the extended reserve manager as a market operation service provider. In April this year, the Authority consulted on the design for the new extended reserve arrangements, including the role of the extended reserve manager as a market operation service provider with limited liability. This further consultation is on the level of that liability limit. The consultation is required before the limit can be specified in the Electricity Industry (Enforcement) Regulations 2010.
Transpower has published the second consultation paper on its operational review of the Transmission Pricing Methodology (TPM).
In July 2014, Transpower published an initial consultation paper on some potential problems with the current TPM. Transpower is now seeking stakeholders’ views on an updated assessment of problems with the current TPM and draft proposals for addressing these problems. If Transpower decides to submit a proposal to the Authority to amend the TPM, the Authority will follow the process set out in the Code for considering a proposed TPM, which includes consultation on the proposed TPM.
Transpower is seeking responses by Friday 19 December 2014. Further information is available on Transpower's website.
Modelling electricity demand in New Zealand: Technical paper published
The Authority has published a technical paper that analyses New Zealand’s electricity consumption since 2000 to determine whether there has been a structural break in the demand for electricity. The paper finds no evidence of a structural break, which means there has not been a shift in how demand drivers affect demand. This is important for the industry because investment is usually long term and is made in anticipation of future demand. A sound understanding of the drivers of demand is important for efficient investment and for setting distribution prices.
The Board has approved the Electricity Industry Participation Code Amendment (Minor Code Amendments) (No 3) 2014. This amendment makes changes to Parts 1, 3, 6, 8, 10, 11, 13 14, 15, and 17 and will come into force on 19 December 2014 (except clauses 6, 7, and 8, which come into force on 23 February 2015).
Wholesale Advisory Group: Hedge market development briefing
The Wholesale Advisory Group (WAG) will be holding a public briefing on its hedge market development discussion paper, released on 11 November 2014.
The purpose of the briefing is to outline the key elements of the discussion paper, with a specific emphasis on EnergyLink’s analysis of futures pricing.
The briefing is scheduled for 9:30am to 12:00pm on Wednesday 10 December 2014, to be held at the Electricity Authority offices at:
Level 7, ASB Bank Tower
2 Hunter Street
Wellington
All interested parties are invited to attend, particularly those that are considering making a submission on the discussion paper.
Submissions on the discussion paper close at 5pm on Friday 19 December 2014.
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.
