Submissions published: Permitting ATHs to amend certification reports
We have published submissions received on our consultation paper on a proposed Code amendment to permit approved test houses (ATHs) to amend certification reports. The consultation closed on 5 June. We are now considering our next steps.
We have completed a post-implementation review of dispatchable demand. The objective of the dispatchable demand project was to develop a regime to enable demand-side participants to participate more fully in the wholesale electricity market. Dispatchable demand went live on 15 May 2014.
The post-implementation review evaluated the project against its expected outcomes. This review found that the dispatchable demand scheme so far is unlikely to have accrued benefits over and above its implementation costs, and would be unlikely to do so without further refinement to encourage more participation in the scheme.
The post-implementation review is available on our website.
We have updated the demand response principles we first set out in a 2015 information paper. Our demand response principles are intended to be a useful and pragmatic guide to encourage and promote the best use of demand response for the long-term benefit of consumers.
Our 2018 update reduces the original 2015 principles from six to four, and uses simpler language to make the principles easier to understand. Our 2018 update paper also includes a separate section testing the updated principles against four examples of demand response.
We have also published a separate decision paper setting out our responses to submissions on our 2015 information paper.
The decision paper and demand response principles are available on our website.
We have begun investigations of alleged breaches by:
Transpower New Zealand Limited as the grid owner − the alleged breaches concern the grid owner reconnecting two parts of the grid that were not synchronised on 2 March 2017.
Transpower New Zealand Limited as the system operator − the alleged breaches concern the system operator’s actions when re-establishing normal operation following an event on the grid on 2 March 2017.
Transpower New Zealand Limited as the grid owner − the alleged breaches concern the grid owner failing to ensure that it operated the HVDC within the overload limits of the asset capability statement (ACS) that it had provided to the system operator. As a result, the system operator relied on the overload limits in the ACS. This meant that, at times when the HVDC was transferring north, the system operator did not procure sufficient reserves to cover the actual risk of Pole 3. This affected approximately 1,400 trading periods between August 2017 and April 2018.
Nova Energy Limited − the alleged breaches concern Nova changing price instead of offer quantity to reflect the unavailability of its McKee generation plant for trading periods 37 and 38 on 23 April 2018.
We have discontinued the investigation into the self-reported breach of clause 15 of Schedule 13.3 and alleged breaches of clauses 13.58(3A), 13.58(3B)(a) and 13.71(1)(d) of the Electricity Industry Participation Code 2010, by Transpower New Zealand Limited as the system operator.
Notification of our decision and reasons are available on our website.
Security and Reliability Council: Independent chairperson update
Mike Underhill resigned as independent chairperson of the Security and Reliability Council (SRC) effective from 18 June. Mr Underhill has served as independent chairperson of the SRC since June 2014. The Authority thanks Mr Underhill for his service and wishes him well in his next endeavours.
Mr Underhill resigned from the SRC after accepting positions on the Boards of two lines companies, as this meant he no longer met the independence requirements of the chairperson’s role. Mr Underhill’s resignation letter is available in the correspondence received at the 22 June meeting of the SRC.
The Authority is calling for nominations for an independent chairperson of the 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 security and reliability of the electricity system face new challenges in an environment of innovative technology and an evolving generation fleet. The SRC needs a credible, independent, and constructive chairperson to guide it through this period of change.
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 term of appointment will likely be two and a half years and we intend to appoint the successful nominee in September 2018.
Nominations and accompanying documents should be emailed to info@ea.govt.nz, with 'Nomination for SRC chairperson' in the subject line by 5 pm on Tuesday, 24 July.
The nomination form and terms of reference are available on our website.
We have published papers from the SRC meetings on 6 November 2017, 13 December 2017, 28 March 2018 and 22 June 2018.
At the latest meeting, the SRC discussed a cyber-security exercise, critical contingencies in the gas network, distributor asset management, measures of reliability, thermal fuels in the hydro risk curves, and winter 2017. Older meetings also discussed a variety of security and reliability matters; these are detailed in the published agendas.
Annual levy rates for the year ending 30 June 2019
We have calculated the annual levy rates for the financial year ending 30 June 2019 in accordance with regulation 7 of the Electricity Industry (Levy of Industry Participants) Regulations 2010.
We will gazette the annual levy rates on Thursday, 5 July, from which date they will also be available on our website.
Proposed list of distributed generation eligible to qualify to receive ACOT in the lower North Island
We are seeking views on the proposed list of distributed generation in the lower North Island that would be eligible under the regulated terms in Part 6 of the Code to receive avoided cost of transmission (ACOT) payments from distributors.
