26 January 2016

 

Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.

 
 

Contents

 
 
 
 
 
 
 
 

Consultation paper on a proposal to introduce a default agreement for distribution services

 
 

We have published a consultation paper describing a proposal to amend the Code to introduce a default distributor agreement (DDA). 

At present, each distributor has a contract with the retailers trading on its network recording the terms on which the distributor provides distribution services to the retailer (often referred to as a use-of-system agreement – UoSA). As a monopoly provider of services, distributors are often in a strong position to dictate the terms of those contracts.  

The proposed amendment would require each distributor, if it uses interposed distribution arrangements, to have a DDA with core terms prescribed by the Code. The DDA will also include operational terms (for example the management of fault calls) developed by the distributor and consulted with retailers.   

Once DDAs are finalised, retailers will be able to insist on the DDA being the contract they have with the distributor if they are unable to reach agreement on an alternative arrangement.  

The consultation period for this proposal runs from 26 January 2016. Submissions close at 5 pm on Monday, 4 April 2016.

 
 
 
 
 
 
 

Two new exemptions granted

 
 

We have granted and gazetted two new exemptions:

  • Contact Energy Limited (No. 238) from complying with the obligation in clause 11.32A(1) of the Code to supply consumer consumption information to a consumer for any installation control point (ICP) where Contact has used the information to provide any service to the consumer and Contact has sourced that information from Metrix Limited's advanced meter midnight reads (which Contact does not use for billing purposes)
  • Genesis Energy Limited (No. 234) from complying with the obligation in clause 15.8 of the Code to provide the reconciliation manager with Genesis' total monthly quantity of electricity supplied for each half hourly (HHR) metered ICP that has a category 1 or 2 advanced metering infrastructure (AMI) meter.

The Gazette notices, including reasons for the approvals, are available on our website. Exemption no. 234 came into force on 22 January 2016 and exemption no. 238 comes into force on 1 February 2016.

Back to top Back to top
 
 
 
 
 
 
 

Accuracy of ANZSIC codes

 
 

In December last year we sent a memo to retailers regarding the need for accuracy when populating ANZSIC codes in the registry.

We asked retailers to ensure that their customer sign-up process identifies the ANZSIC code for their customers and ensures it is as accurate as possible. We also asked retailers to have processes in place to regularly review ANZSIC codes of ‘Unknown’ (and similar) and update those codes as appropriate.

We re-sent the memo earlier this year, in case the original was missed in the lead up to Christmas. If you did not receive a copy, please contact
marketoperations@ea.govt.nz 

Back to top Back to top
 
 
 
 
 
 
 

Current consultations

 
 

Distribution pricing review

We have published a consultation paper, and a supporting companion paper, on the implications of evolving technologies for the pricing of distribution services.

Started: 03/11/2015; Ending: 02/02/2016 5pm

System operator and market services review

We have published a consultation paper that proposes to amend the Code to alter the manner in which the system operator and other market operation service providers perform their roles.

Started: 08/12/2015; Ending: 10/02/2016 5pm

Operational enhancements to dispatchable demand

We have published a consultation paper on dispatchable demand during tight market conditions. We are proposing to amend Part 13 of the Electricity Industry Participation Code 2010 (Code) to restrict the bid prices for dispatch capable load stations (DCLS).

Started: 19/01/2016; Ending: 1/03/2016 5pm

Back to top Back to top