The Authority has conducted market performance enquiries into two grid emergencies that happened last winter, one on 27 May, and one on August 19.
The August grid emergency resulted in prices of over $9,000 for one 30-minute trading period. The enquiry considered the trading conduct of generators, the accuracy of price forecasts and how transmission pricing was affecting behaviour. The enquiry found that the structure of the charge used to recover the cost of the HVDC link causes offer behaviour that caused the August grid emergency to be worse than it otherwise would have been.
Information paper released: Enabling a national market for instantaneous reserve
The Authority considers that enabling a national instantaneous reserve market would promote its statutory objective by increasing competition between instantaneous reserve providers in each island. It would also reduce the quantity of instantaneous reserve procured, benefitting consumers by deferring investment in new capacity.
The Authority has published an information paper, seeking feedback on its proposal to make changes that would enable a national market for instantaneous reserve. Feedback should be received by 5pm on 17 February 2015.
Decisions and reasons paper released: Interim arrangements for inter-island reserve sharing
The Authority has proposed that the system operator make low cost administrative changes to take greater account of the reserve sharing across the HVDC link. These changes would benefit consumers because the system operator would be able to procure less fast instantaneous reserve in each island, increasing competition between providers and lowering costs.
The Authority has considered submissions on the information paper ‘Interim arrangements for enhanced inter-island reserve sharing’ and decided to ask the system operator to implement changes outlined in the information paper. The system operator plans to implement the changes on 17 December 2014.
Summary of submissions published: Improving transparency of consumers’ electricity charges
The Authority has published a summary of the submissions on improving transparency of consumers’ electricity charges consultation paper.
The Authority believes that improving transparency of consumer’s electricity charges would promote its statutory objective of increasing competition in the retail market due to more engaged consumers. It would also improve consumers’ confidence in the market which will improve regulatory stability and market durability.
Wholesale Advisory Group: Hedge market development discussion paper briefing
The Wholesale Advisory Group is holding a briefing to outline the key elements of its hedge market development discussion paper. There will be a specific emphasis on EnergyLink’s analysis of futures pricing.
A live webinar of this briefing will be broadcast. Teleconference facilities are also available.
All interested parties are invited to attend, especially those who are considering making a submission on the discussion paper.
The event will be held on Wednesday 10 December, 9.30am-12pm at the Electricity Authority, 2 Hunter Street, Wellington.
We are preparing to tender for the service provider roles of:
pricing manager
reconciliation manager
wholesale information trading system (WITS) provider
clearing manager.
We had intended to tender for the registry manager role at the same time. However, we have decided to defer tendering that role for a year while the future data requirements resulting from our retail data initiative are being developed.
To inform the decision on whether to tender or roll over the current agreements, we contracted PA Consulting Group to conduct a review of the current arrangements and report on the extent to which the existing arrangements remain suitable for the operation of the NZ electricity market over the decade to 2025.
Information about the tender is also available on our website. The website will be updated at key points in the tendering process to keep industry participants informed on progress.
If you are interested in bidding for any of these roles, you are welcome to contact the Authority to discuss the requirements and tender process up until the time that the RFPs are released. Please direct any enquiries to:
2014/15 Work Programme Report to 30 September 2014
The Authority has published its first quarter report against its 2014/15 work programme. The report covers the first quarter of the financial year (1 July 2014 to 30 September 2014).
The work programme report provides information about all key market development, implementation, monitoring, information, education, and compliance projects.
Settlement and Prudential Security implementation: Clearing manager information for participants
The clearing manager has published the following information for participants to assist in their preparation for the Settlement and Prudential Security changes that come into force from 24 March 2015:
Information sheet 5—Invoicing and settlement changes
Information sheet 6—New ways to pay: by prepayment and from prudential
Stress test scenarios unchanged for the January-March quarter of 2015
The stress test scenarios previously published on the Authority's website will apply for the January–March 2015 quarter. There is no change from the previous quarter.
The stress-testing regime requires certain participants in the wholesale electricity market to apply a set of standard stress tests to their market position, and report the results to their board and to NZX as the independent registrar appointed by the Authority.
Questions about the stress tests can be directed to info@ea.govt.nz. Please include 'stress test' in the subject line.
The registry FTP service will close down on 31 December 2014.
From 1 January 2015 all file interchange with the registry must be via SFTP. The report for October shows there are some participants using both FTP and SFTP.
Please ensure all parts of your organisation with a file interchange with the registry have transferred to SFTP, or will be transferring before 31 December 2014.
The Authority has granted and gazetted a new exemption for Electric Kiwi Limited (No. 218) from complying with the obligation in clause 15.38 of the Code to obtain and maintain certification.
The Gazette notice, including reasons for the approval, is available on the exemptions page of the Authority’s website. The exemption came into force on 5 December 2014.
