Consultation to alter the way instantaneous reserve (IR) procurement costs are allocated
Instantaneous reserve (IR) is currently procured in each island and the costs are allocated on the same basis. Later this year, we are planning to make software changes so the system operator would procure IR nationally. We propose to amend the Electricity Industry Participation Code 2010 (Code) so the costs are also allocated on a national basis.
We are concerned about the undesirable consequences of procuring IR nationally that might develop if we continue to allocate the costs separately in each island. Such a mismatch would likely lead to costs being allocated to parties that have not caused those costs. It could lead these parties to make inefficient investment or retirement decisions, and could create perverse incentives when they make reserve offers. Inefficient investment or retirement decisions are not in the long-term interest of consumers, and would result in higher spot prices and power bills.
Extension to consultation on default agreement for distribution services
We have extended the submission period for the Default agreement for distribution services consultation paper by two weeks. The extension was requested by the Electricity Networks Association.
Submissions should now be received by 5 pm on Tuesday, 19 April 2016.
The consultation paper is available on our website.
Decision to review the Customer Compensation Scheme (CCS) and stress testing regimes
We have decided to review the CCS and stress testing regimes to ensure they are consistent with delivering ongoing security of supply in the face of the recent and potential closures of thermal plants. The stress testing regime is formally called the Spot Price Risk Disclosure regime.
While all aspects of the CCS are under review, the primary focus will be on whether the level of payments to be made under the CCS regime are still appropriate, and whether it is still appropriate that all retailers are required to make payments.
While all aspects of the stress testing regime are under review, the primary focus will be on whether the price level scenarios and the anonymity requirements are still appropriate.
We have had some queries from registry users about how the ‘Registry Access Policy’ applies to data sourced from the Connection Data Application Program Interface (API).
We can confirm that the restrictions on data use in the ‘Registry Access Policy’ DO NOT apply to the use of the Connection Data API, or to the data sourced from it. This means retailers (and any other party) can use the Connection Data API to compete for customers. We have updated the Registry Access Policy to add this clarification.
Call for nominations to the Security and Reliability Council
We are calling for nominations for a member 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 and former employees of industry members. We are required to ensure that, between them, the members of the SRC have appropriate knowledge and experience of the electricity industry to provide advice to the Authority.
The vacancy on the SRC arises because of the resignation of Judi Jones, the departing Electricity and Gas Complaints Commissioner. As such, we are particularly interested in nominations from people who have knowledge and experience with representing residential consumers.
We intend to appoint the successful nominee in May 2016.
Please email nominations and accompanying documents (as described on the nomination form) to info@ea.govt.nz, with 'Nomination for SRC membership' in the subject line, by 5pm on Tuesday, 22 March 2016.
Stress test scenarios unchanged for the April-June quarter of 2016
The stress test scenarios that we previously published on our website will apply for the April-June 2016 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 the NZX as the independent registrar appointed by the Authority.
Please direct any questions about the stress tests to marketoperations@ea.govt.nz, with 'Stress test' in the subject line.
We are investigating a self-reported breach of the Code by Transpower New Zealand Limited (Transpower) as the grid owner. The breach concerns the tripping of the Takapu Road transformer T1 on 25 May 2015, resulting in the loss of power to Wellington Electricity Limited.
Reminder that on behalf of the Rulings Panel we are making its draft revised procedures available for feedback. Feedback to the Rulings Panel should be received by 5:00 pm, Thursday 24 March 2016. We will pass any feedback that we receive to the Rulings Panel for its consideration.
