Consultation on refining two aspects of the customer compensation scheme
We have published a consultation paper on our review of two aspects of the customer compensation scheme (CCS). The aspects are:
addressing possible inefficiencies in how the CCS handles customer switching during conservation campaigns
whether the minimum weekly amount (MWA) of the default compensation scheme should be calculated annually.
These two aspects were identified as possible refinements to the CCS in our 2016/17 review.
We consider the proposals would promote the competition and efficiency limbs of the Authority’s statutory objective. We think the first aspect does this by removing an incentive for retailers to avoid gaining customers during conservation periods, and the second aspect by introducing more flexibility for reviewing the calculation of the MWA.
The consultation paper is available on our website. Submissions on the paper close on Tuesday, 10 April.
We have completed a review of high spot prices that occurred on 2 June 2016. Our review found that using offers to link prices across a transmission constraint could harm the market in various ways. On 2 June 2016, this offer approach contributed to high spot prices in the South Island that were inconsistent with workable competition.
Information about the review and the report on the review are available on our website.
Investigator appointed to look into alleged breaches
We are investigating alleged breaches by the system operator, Transpower New Zealand Limited.
In October 2017, the system operator identified that in certain circumstances the market system didn’t use the most recent nominated bids from a dispatchable load station in the scheduling and dispatch processes.
The issue has been identified as having affected 563 trading periods between 27 October 2016 and 19 October 2017.
The notice of investigation is available on our website.
We have granted and gazetted a new exemption (Exemption No. 266 on our website).
Contact Energy Limited is exempted from complying with the obligation in clause 11.32A(1) of the Code to supply consumer consumption information, where Contact has sourced that information from Metrix Limited's (Metrix) advanced meter midnight reads, which Contact does not use for billing purposes.
The Gazette notice, including our reasons for granting the exemption, is available on our website.
We have published a consultation paper on Multiple trading relationships. The paper identifies potential barriers that may constrain consumers from using electricity services provided by more than one party at the same time, at the same location (multiple trading relationships).
We’re proposing a number of discrete amendments to various parts of the Code. The amendments largely focus on resolving practical problems created by Code provisions that impede the efficient operation of the industry.
