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15 October 2019

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

Integrating hosting capacity into Part 6 of the Code
Extended Reserve project refocussed
Submissions published: Survey on removal of provision for South Island-only official conservation campaigns
Open Networks workshop and Reconciliation Participant workshop – November 2019
Retail market snapshot
Call for nominations for Standing Data Formats Group
Compliance investigation commenced and open for participants to join
Closure of investigations
Current consultations
Consultation calendar

Integrating hosting capacity into Part 6 of the Code

In September 2018 we published an issues paper Integrating hosting capacity into Part 6 of the Code on low voltage networks. Submissions on the issues paper closed in November 2018. On 5 August 2019 we published a decisions paper stating that we proposed amending Part 6 of the Electricity Industry Participation Code 2010 (Code), and that we would consult on the proposed amendment.

We have now published the Code amendment consultation paper to integrate hosting capacity into the application process, detailed in Part 1A of Schedule 6.1 of the Code. This work is part of our Open Networks Development Programme.

The consultation closes at 5pm on Tuesday, 3 December 2019.

Extended Reserve project refocussed

The Authority has refined the focus of the Extended Reserve project to achieve a secure transition to a 4-block automatic under-frequency load shedding (AUFLS) scheme in the North Island. We have been working with the system operator (Transpower) to develop a proposal for the scheme and determine the technical challenges faced by providers.

AUFLS is the mechanism used to shed large blocks of load to prevent the electricity system collapsing if there is a rapid fall in system frequency.

In October 2017, the Authority paused the Efficient Procurement of Extended Reserve project to resolve technical issues. Since then, we have been working with service providers to investigate these issues and develop an improved AUFLS scheme.

The proposed transition from 2-blocks to 4-blocks would reduce the size and increase the number of AUFLS blocks provided by distributors. This would mean that potentially fewer consumers would be affected by a significant loss of supply.

This complex project is expected to take 4-5 years to implement. The Authority and system operator will be contacting North Island distributors and direct connect consumers shortly with the next steps.

Submissions published: Survey on removal of provision for South Island-only official conservation campaigns

We have published submissions in response to the survey on removing provision for South Island-only official conservation campaigns. Submissions closed on 7 October 2019. The submissions are now available on our website.

We aim to publish all submissions in a timely manner. If you can’t find your submission on our website please get in touch by email to info@ea.govt.nz.

Open Networks workshop and Reconciliation Participant workshop – November 2019

The Authority is hosting two workshops at the Majestic Centre in Wellington in November to provide more information about issues on which we are consulting.

The workshop on 19 November 2019 will cover proposed amendments to Part 6 of the Code to allow for integrating hosting capacity into small-scale distributed generation connections. This work is part of our Open Networks Development Programme.

The workshop on 20 November 2019 will be of interest to reconciliation participants and will cover proposals to make ICP switching processes more efficient as well as several other relevant updates.

If you would like to attend a workshop, you will need to register.

Retail market snapshot

We have redesigned and updated the annual retail market snapshot. With the interactive tool you can explore the changing dynamics of the retail electricity market over the last decade as well as drill down to focus on specific regions.

The tool is linked to the Electricity Market Information (EMI) website where more insights into the ever-changing structure and competitiveness of the retail market can be found.

Despite some challenging conditions in the wholesale market over the past year, competition and consumer choice in the retail market continues to improve.

View Retail market snapshot

Call for nominations for Standing Data Formats Group

We are calling for nominations for a metering equipment provider (MEP) member to join the Standing Data Formats Group (SDFG). The SDFG provides independent advice to the Authority on information exchange protocols between participants and:

the market operation service providers
consumers
third party providers.

The group is currently advising on the method of transfering notifications for EIEP5A planned outages and a proposal to mandate one reporting methodology for distributor billing for EIEP1. There are several new projects in the pipeline including considering creating new standardised formats for smart metering data and considering options for a standard format for MEPs to provide data to traders.

We will appoint the successful nominee in November 2019 for an expected term of three years.

Please use our online form to submit nominations and accompanying documents. Nominations close at 5pm on Tuesday, 29 October 2019.

Compliance investigation commenced and open for participants to join

The Authority has commenced an investigation into an alleged breach of the Code by Transpower New Zealand Limited as the grid owner.

The grid owner self-reported that it had breached clause 4(4)(a)(ii) of Technical Code A of Schedule 8.3 of the Code. On 19 November 2018, the grid owner’s protection system at its Wairakei substation was not selective when operating causing a disconnection of generation and loss of supply to Taupo.

Participants who consider they are affected by the matter being investigated may join as a party to the investigation. To join the investigation, participants should notify the investigator no later than Thursday, 24 October 2019. The investigator’s contact details are in the notice of investigation on our website.

Read notice of investigation

Closure of investigations

We have discontinued the following investigation into alleged breaches of the Code:

Self-reported breaches of clause 13.69A of the Code by Transpower New Zealand Limited as the system operator. The investigation concerned the system operator’s failure to procure the correct amount of fast instantaneous reserve (FIR) between 18 January 2018 and 17 January 2019, when the Whirinaki generating station was dispatched to provide FIR.

Notification of our decision and reasons are available on our website.

Read notification of our decision

Current consultations

Default Distributor Agreement consultation paper

Ending: 15/10/2019 5pm

Transmission Pricing Methodology: 2019 Issues Paper – cross-submissions

Ending: 31/10/2019 5pm

Code Review Programme September 2019

Ending: 05/11/2019 5pm

Consultation calendar

V iew our high-level consultation calendar

Level 7, Harbour Tower, 2 Hunter Street, PO Box 10041, Wellington 6143, New Zealand
Tel: + 64 4 460 8860 Email: info@ea.govt.nz

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