Proposed amendment to the switching process for ICPs with AMI meters
The Authority is consulting on a draft Code amendment for the use of readings from advanced metering infrastructure (AMI) meters in the ICP switching process. The proposed amendment would benefit consumers during the switching process by ensuring that, when there is an AMI meter, retailers use accurate switch event meter readings for consumer invoicing. The proposed amendment has been identified following consideration of the submissions on the consultation paper ‘Switch process re-engineering—Review of Schedule 11.3’.
Switch process re-engineering—Review of Schedule 11.3—decisions and reasons
In December 2013 the Authority consulted on a number of proposed amendments to improve the process for switching ICPs using advanced metering infrastructure (AMI) meters. The Authority has now released its decision on the proposals, together with a summary of submissions. The decisions relate to the Electricity Industry Participation Code Amendment (ICP Switching) 2014 that was gazetted on 6 October 2014.
The Authority notes that the decisions may require participants to complete changes to their business processes and market systems.
New dates: Improving transparency of consumers’ electricity charges project
In the 23 December 2014 issue of Market Brief, the Authority indicated that it would publish decisions regarding this project on 20 January 2015 and hold a workshop to discuss the decisions in the week beginning 26 January.
The publication of these decisions has been delayed, and the new publication date is 3 February 2015.
The Authority still intends giving parties two weeks to provide written feedback on its decisions following this publication date.
In addition, the workshop date has now shifted to 10 February 2015. This workshop will 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.
Please email conference@ea.govt.nz with ‘Improving transparency workshop’ in the subject line to register your interest in attending the workshop and to advise any catering requirements. The workshop will run from 11.30am-2pm with a light lunch provided.
The Authority considers that improving transparency of consumers’ 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.
Updated undesirable trading situation guidelines published
The Authority has updated its guidelines for participants in undesirable trading situations (UTS). The guidelines describe how a participant can claim a UTS and the process that the Authority will generally follow in these circumstances. The main changes made in the guidelines are to reflect the amendments made to the regime for dealing with a UTS (in Part 5 of the Code) that came into effect in July 2013.
The switch saving protection regime Code amendment came into effect on 12 January 2015. Part 11 of the Code allows 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.
Meeting papers for the Wholesale Advisory Group meetings on 15 August 2014, 12 September 2014, 26 September 2014, 17 October 2014 and 28 November 2014 have been published.
Call for nominations to the Security and Reliability Council
The Authority is calling for nominations for members of the Security and Reliability Council (SRC). The SRC provides independent advice to the Authority on reliability of supply issues and on the performance of the electricity system and the system operator. The SRC comprises senior members of the New Zealand electricity industry including consumers. The Authority is required to ensure that the members of the SRC have between them appropriate knowledge and experience of the electricity industry to provide advice to the Authority. The Authority is keen to ensure the membership includes at least one member with expertise in the electricity distribution sector.
The expected term of appointment is three years. The Authority intends to appoint the successful nominees in March 2015.
Nominations and accompanying documents should be emailed to info@ea.govt.nz, with 'Nomination for SRC membership' in the subject line by 5pm on Tuesday, 10 February 2015.
Call for nominations for the Retail Advisory Group chairperson and the Wholesale Advisory Group chairperson
The Authority is calling for nominations for the Chairs of the Retail Advisory Group (RAG) and the Wholesale Advisory Group (WAG).
The RAG and the WAG are two of the advisory groups set up by the Electricity Authority under its Charter about Advisory Groups [link]. Advisory groups and the Charter are requirements of the Electricity Industry Act 2010. Both advisory groups provide independent advice to the Authority Board on the development of the Electricity Industry Participation Code and on market facilitation measures.
The RAG provides independent advice to the Board on the development of the Code and market facilitation measures, focusing on the relationships between the retailer, the distributor and the consumer.
The WAG provides independent advice to the Board on the development of the Code and market facilitation measures focussing on the design of the wholesale electricity market, including wholesale electricity, ancillary services and risk management contracts.
The Authority invites nomination of people who:
can provide impartial advice to the Board of the Electricity Authority
have a high level of integrity
possess a sense of public duty
are highly credible to people within the electricity industry
can speak with a level of authority.
In addition to this the chairperson must be demonstrably free of conflicts of interest.
Nominations should be emailed to rag@ea.govt.nz or wag@ea.govt.nz by 5pm Tuesday 10 February 2015, with ‘Chairperson nomination for Retail Advisory Group’ or ‘Chairperson nomination for Wholesale Advisory Group’, whichever applies, in the subject line.
From 24 March 2015, participants who deposit cash with the clearing manager for prudential security must have in place a security agreement with the clearing manager. This is to ensure the clearing manager can use the cash in the event of a default.
The Authority has approved the template of the specific security agreement that participants must use. The template agreement and an information sheet on how to set up a security arrangement are published on the clearing manager’s website.
This change is part of the Settlement and Prudential Security changes coming into force from 24 March 2015.
Draft determination of causer of an under-frequency event: 27 November 2014
The system operator has made a draft determination on the causer of an under-frequency event that occurred on 27 November 2014. The draft determination has been published on the Wholesale Trading and Information System (WITS) and the system operator’s website.
Submissions on the 27 November 2014 draft determination should be forwarded to the system operator at market.services@transpower.co.nz by 5pm on Wednesday, 4 February 2015.
Draft determination of causer of an under-frequency event: 8 December 2014
The system operator has made a draft determination on the causer of an under-frequency event that occurred on 8 December 2014. The draft determination has been published on the Wholesale Trading and Information 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 Tuesday, 3 February 2015.
Investigation of alleged breaches by Transpower New Zealand Limited as the system operator
The Authority has begun an investigation into a self-reported breach and alleged breaches of the Electricity Industry Participation Code 2010 by Transpower New Zealand Limited as the system operator. On 10 and 11 September 2014, the system operator failed to correctly model the contingent event risk associated with a planned HVDC harmonic filter (filter) outage. This resulted in North Island reserves being under-procured by 388MW and created a significant potential security risk. When the system operator corrected the modelling error in real time it caused a separation in energy prices between the North and South Islands to which participants could not react. The system operator subsequently recalled its permission for the filter outage resulting in the grid owner recalling the filter outage. Affected parties may join the investigation.
Investigation of alleged breaches by Transfield Services (New Zealand) Limited as a metering equipment provider
The Authority has begun an investigation into a self-reported breach and alleged breaches of the Electricity Industry Participation Code 2010 by Transfield Services (New Zealand) Limited (Transfield) as a metering equipment provider. The breaches concern inaccurately measured raw meter data for a category 5 metering installation for which Transfield is responsible. It is alleged that the inaccuracies were substantial and could have been lessened, or avoided altogether, had Transfield complied with clause 14 of Schedule 10.7 by ensuring the meter certification was completed by arranging a prevailing load test. It is also alleged that Transfield, under clause 10.43(4), should have provided an investigation report to affected participants on the findings of its investigation into the inaccurate metering installation. Affected parties may join the investigation.
The Authority approved a settlement between Meridian Energy Limited, Transpower New Zealand Limited as the system operator and Genesis Energy Limited. The settlement resulted from an investigation concerning a breach of clause 13.97(2)(b) when Meridian Energy Limited reduced its reserve offer during a grid emergency without a bona fide physical reason.
The Electricity Industry Participation Code Amendment (Minor Code Amendments) (No 3) 2014 came into force on 19 December 2014, with the exception of amendments to Part 6 which come into force on 23 February 2015.
The amendments that came into force on 19 December are to Parts 1, 3, 8, 10, 11, 13, 14, 15, and 17.
Reconciled levy rates for the year ending 30 June 2014
The Electricity Authority has calculated the reconciled levy rates for the financial year ending 30 June 2014 in accordance with regulation 11 of the Electricity Industry (Levy of Industry Participants) Regulations 2010.
Please note the gazette notice published on Thursday 8 January contained an error and has been replaced with the gazette notice published on Thursday 15 January. The invoices and refund notices that have been issued by the Authority have used the levy rates set out in the updated gazette notice.
