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2 June 2020

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

Development of updated guidelines for vulnerable and medically dependent consumers
Publication of post-implementation review of the FTR market
South Island-only official conservation campaigns to remain in place
Call for nominations - three members for the Market Development Advisory Group
Cross submissions on MDAG's High Standard of Trading Conduct discussion paper published
Current consultations

Development of updated guidelines for vulnerable and medically dependent consumers

Over the remainder of 2020, the Authority will be facilitating the development of updated guidelines for vulnerable and medically dependent consumers, replacing the existing guidelines which have been in place since 2010. The updated guidelines will be developed through an extensive engagement process with a wide range of stakeholders.

In the immediate term, as a temporary measure the Authority has developed a short addendum to the existing “Guideline on arrangements to assist vulnerable consumers” and the “Guideline on arrangements to assist medically dependent consumers.” This addendum covers three key issues highlighted by stakeholders in recent months. Other known issues are more complex and require significant stakeholder engagement and will be progressed through the longer-term development project.

The Authority has published the draft addendum today, with an accompanying memo, and requests feedback from stakeholders over the next two weeks.

Publication of post-implementation review of the FTR market

We have published a post-implementation review of the financial transmission rights (FTR) market.

The FTR market was introduced in June 2013 to provide “mechanisms to help wholesale market participants manage price risks caused by constraints on the national grid” as directed under section 42 of the Electricity Industry Act 2010.

The purpose of post-implementation reviews is to evaluate an initiative against its expected outcomes. This review found that overall the FTR market has been successful in increasing competition in the retail electricity market by allowing some retailers to expand into new geographical areas. FTRs have also allowed several users to underwrite or support other risk management products, and many users consider FTRs to be an effective tool to have in their risk management strategy. One opportunity identified is the need for more education on FTRs, particularly for smaller firms.

South Island-only official conservation campaigns to remain in place

The Authority has decided not to remove the provision for South Island-only official conservation campaigns (OCCs) in the Code. This is following a survey of industry participants in 2019, as part of the Review of regulatory settings for OCCs and the security of supply forecasting and information policy projects. We will not amend Part 9 of the Electricity Industry Participation Code 2010.

We appreciate the time participants took to give feedback. We may consider looking at this question again in the future, through the standard Code review process, as priorities allow.

See our website for more information.

Call for nominations - three members for the Market Development Advisory Group

We are calling for nominations for three members for the Market Development Advisory Group (MDAG).

The term for new members will start on 1 October 2020. An Advisory Group Member term is for three years and therefore membership will conclude on 30 September 2023.

You can find out more information about the MDAG, along with the nomination form and details about how to submit your nomination here. Information on the Charter and Terms of Reference for Advisory Groups is here.

Nominations close at 5 pm on Tuesday 30 June 2020.

Cross submissions on MDAG's High Standard of Trading Conduct discussion paper published

The cross submission period for the Market Development Advisory Group’s (MDAG) High Standard of Trading Conduct discussion paper closed on 27 May at 5pm and cross submissions have been published today.

The MDAG thank all submitters and cross-submitters for taking the time to send their feedback. Cross submissions will be considered carefully through the development of the recommendations paper .

Hedge Market Enhancements Marking Making consultation paper

Ending: 16/06/2020 5pm

Feedback on a proposed addendum applying to the "Guideline on arrangements to assist vulnerable consumers" and the "Guideline on arrangements to assist medically dependent consumers"

Ending: 16/06/2020 5pm

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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