Information paper released: Improving transmission loss modelling in SPD
The Authority considers that, when dispatching and pricing generation in the wholesale market, modelling transmission losses more accurately would promote its statutory objective by improving competition between generators and operational efficiency in the electricity industry for the long-term benefit of consumers. More accurate modelling of transmission losses would allow the system operator to more accurately determine the cheapest generation options.
The Authority has published an information paper proposing to increase the number of segments used by the system operator to estimate losses on AC transmission lines. Increasing the number of segments would improve the system operator’s estimate of transmission losses.
Feedback on the proposal is welcome and should be received by 5pm on 3 February 2015.
Improving transparency of consumers’ electricity charges project
The Electricity Authority has considered submissions and next steps for the improving transparency of consumers’ electricity charges project. The Authority will publish its decisions on 20 January 2015.
The Authority intends giving parties two weeks to provide written feedback on its decisions. The Authority also intends holding a workshop in the week starting 26 January 2015 to give parties an opportunity to ask questions and provide oral feedback about the decisions. The Authority is particularly interested in obtaining feedback about the practical implications of its decisions. The Authority intends finalising arrangements for improving transparency of consumers’ electricity charges in time for announcements by retailers and distributors of price changes for 2015-16.
Please email conference@ea.govt.nz with "Improving transparency workshop" in the subject line to register your interest in attending the workshop. More details on this workshop will be provided in the first edition of Market Brief next year.
The Authority considers 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.
Draft determination of causer of an under-frequency event: 15 November 2014
The system operator has made a draft determination on the causer of an under-frequency event that occurred on 15 November 2014. The draft determination has been published on the Wholesale Information and Trading System (WITS) and the system operator’s website.
Submissions on the draft determination should be forwarded to the system operator at market.services@transpower.co.nz by 5pm on Wednesday, 7 January 2015.
The switch saving protection regime Code amendment comes into effect on 12 January 2015. Part 11 of the Code will allow a trader that gains a new consumer to elect to be protected from saves initiated by the losing trader. If the gaining trader has chosen switch saving protection, the Code will prohibit the losing trader from initiating contact with any of its customers that are acquired by the gaining trader, to persuade the customer to terminate its arrangement with the gaining trader.
Implementing retailer default—decisions and reasons
The retailer default Code amendment came into force on 16 December 2013 and introduced a three-phase process for managing a trader event of default. In August 2014, the Authority identified and consulted on four proposals for the retailer default regime to allow the new arrangements to operate more effectively. The Authority has released its decision on the proposals.
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.
