Transmission Pricing Methodology: Workshops begin this week
As previously advised, we are holding workshops this week for interested parties to ask questions and clarify points about the Transmission Pricing Methodology options working paper and any of the associated documentation.
If you haven’t confirmed your attendance at the Wellington, Invercargill or Christchurch workshops, please contact us before 5 pm today (Tuesday, 7 July 2015).
Please email your name along with the date of the workshop(s) you wish to attend to conference@ea.govt.nz with ‘TPM workshop’ in the subject line.
Wellington: Wednesday, 8 July 2015 from 1:00—5:00 pm at the InterContinental Wellington, 2 Grey Street, Wellington.
Invercargill: Thursday, 9 July 2015 from 12:00—2:00 pm at the Ascot Park Hotel, Tay Street and Racecourse Road, Ascot, Invercargill.
Christchurch: Friday, 10 July 2015 from 11:00 am—3:00 pm at the Hotel Novotel Christchurch Cathedral Square, 52 Cathedral Square, Christchurch.
Published: Shortened gate closure and revised bid and offer revision provisions consultation paper
We are proposing to amend the Code to allow for a shortened gate closure for some participants and to improve the bid and offer revision provisions. The proposed amendments would promote our statutory objective by improving operational efficiency by allowing more flexibility for participants to respond to changing circumstances, clarifying when bids and offers can be revised and clarifying the provisions related to intermittent generation. In addition, we expect these changes to improve reliability by improving the quality of information entered into the system operator’s scheduling process.
We have published a consultation paper and submissions close at 5 pm on Wednesday, 19 August 2015.
New EMI reports: Hedge market reporting and hydro risk curves
The EMI website (www.emi.ea.govt.nz) provides users with access to part of our data warehouse and is the avenue we use for publishing data, market performance metrics, and analytical tools to facilitate effective decision-making and support monitoring within the New Zealand electricity industry. EMI offers users the ability to interrogate and visualise data, and to share insights from the site.
We have released the following three reports on EMI:
Exchange-traded futures prices. Daily settlement prices are reported for all contracts traded on the ASX exchange. A range of New Zealand electricity futures and options contracts are traded on the ASX exchange. Futures and options contracts are standardised financial instruments that are traded and centrally cleared on an accessible exchange. This means they are very efficient mechanisms for participants to manage price risks in the New Zealand electricity market because they remove the need to seek out a counter party to the contract and negotiate terms and conditions.
Example: Short-dated, quarterly, base load settlement prices at Otahuhu are illustrated here www.emi.ea.govt.nz/r/izcxb
Exchange-traded open interest. Open interest, expressed in energy terms and as the number of contracts, is reported for all contracts traded on the ASX exchange.
Example: See the recent record quantities of open interest across all instruments here www.emi.ea.govt.nz/r/ejmrl
Historical hydro risk curves. The system operator is responsible for publishing the hydro risk curves (HRCs) as part of its security of supply function. We have published an historical series to enable analysis of shortage risk presented to the market.
We have granted and gazetted a new exemption for Nelson Electricity Limited (No. 228) from complying with the obligation in clause 10.25(1) of the Code to ensure there is one or more metering installations for a network supply point that is not a point of connection to the grid.
The Gazette notice, including reasons for the approval, is available on the exemptions page of our website. The exemption came into force on 3 July 2015.
We are investigating self-reported breaches by Contact Energy Limited and breaches alleged of Alpine Energy Limited, Electricity Invercargill, The Power Company Limited, and Delta Utility Services Limited.
The breaches concern the expiry of interim certification of category 1 metering installations on 1 April 2015.
We have approved three settlements, as outlined below.
We have approved a settlement between Transpower New Zealand Limited as the grid owner, Transpower New Zealand Limited as the system operator, and Genesis Energy Limited. The grid owner discovered that it did not have compliant duplicate 220 kV main protection systems in place for its cable connection to Huntly Unit 5.
We have approved a settlement between Transpower New Zealand Limited as the grid owner and Transpower New Zealand Limited as the system operator. The grid owner did not ensure a circuit breaker at its Stoke substation was capable of operating within the limits of its asset capability statement. As a consequence, the circuit breaker tripped and caused loss of supply to Network Tasman Limited and most of Nelson city.
We have approved a settlement between Transpower New Zealand Limited as the grid owner and Transpower New Zealand Limited as the system operator. The grid owner did not ensure a transformer at its Fernhill substation was capable of being operated within the limits stated in its asset capability statement. As a consequence, the transformer tripped and caused loss of supply to Unison Networks Limited at Fernhill.
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.
