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30 June 2020
Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.

Contents

Authority's preliminary decision on the 2019 UTS claim

The Electricity Authority has published a preliminary decision in response to the undesirable trading situation (UTS) claim made by Haast Energy Trading, Ecotricity, Electric Kiwi, Flick Energy, Oji Fibre, Pulse Energy Alliance and Vocus (the ‘claimants’).

The Authority received the claim on 12 December 2019 alleging a UTS had started on 10 November 2019 and was ongoing at the time of the claim.

The Authority has investigated the claim and our analysis is detailed in the preliminary decision document.
 
The preliminary decision is now open for consultation for six weeks. Submissions are due by 5pm 11 August 2020.
 
You can read the preliminary decision paper and claim on our website.

Medically Dependent Consumer and Vulnerable Consumer guidelines: Publication of decision memo and final addendum

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.

As a temporary measure, the Authority has developed an addendum to reflect practical changes that have occurred to three key issues as the electricity market and related processes have evolved. These issues, amongst others, were identified by stakeholders. While these three issues were able to be addressed by the addendum, other known issues are more complex and require significant stakeholder engagement.

The Authority sought feedback from stakeholders on the addendum content, took that feedback into account, and has finalised the addendum. This addendum is effective from 30 June 2020.

Note that all issues related to the guidelines for medically dependent and vulnerable consumers, including those addressed within the addendum, will be reviewed through the longer-term update process that the Authority is leading.
 

Read more

Stakeholder workshops: Updating the medically dependent consumer and vulnerable consumer guidelines

The Authority is hosting a series of workshops to hear from stakeholders to inform the update of the guidelines for vulnerable and medically dependent consumers.

Four workshops will be held in Wellington throughout July and August. Participants who are unable to attend in person are welcome to join via Zoom, although attendance in person is recommended to allow for more effective participation. These workshops are being independently facilitated and have been designed to ensure stakeholders can share their views and add their perspective to the update of the guidelines.

On 24 June the Authority hosted an online presentation to explain the background to the guidelines, why they need updating, and how the update will be managed. You can see the slides from that presentation here.

For more information on the workshops, including how to register, please see our website. 

Industry-led forum proposal published

In 2019 the Minister for Energy and Resources accepted an Electricity Price Review Panel recommendation to introduce mandatory market-making obligations unless the sector develops an effective incentive-base scheme. In early 2020 the Authority offered to support the establishment of a forum for developing an industry view on a suitable incentive-based market-making scheme.

The industry-led forum has now developed a proposal and has presented it to the Authority for its consideration. The Authority will consider the proposal alongside all other feedback received when it decides on a high-level approach to market making in August 2020. 

The proposal is available on the Authority’s website.

Saves and win-backs - monitoring reports and guidance published

On 31 March 2020, the Authority amended the Code to prohibit saves and win-backs for a period of 180 days. Saves and win-backs is the term used to describe two ways a retailer may seek to win a customer back shortly after that customer has agreed to switch to another retailer.

A practice note has been published to assist retailers with complying with the Code.

Two EMI reports have been published that summarise and show trends of indicators of potential win-backs by traders and retail parent companies.

MDAG's recommendations paper on enabling participation of new generating technologies in the wholesale electricity market published

The Market Development Advisory Group (MDAG) paper on enabling participation of new generating technologies in the wholesale electricity market is now available. If you would like to comment on MDAG’s recommendations, please send an email to info@ea.govt.nz with “New generating technologies” in the subject line.
Read more

Security and Reliability Council (SRC) meeting papers published

We have published the papers from the SRC meetings held on 12 March and 12 May 2020. Topics discussed include the EPR's review of resilience and security, system operator security of supply reports, the electricity industry response to COVID-19 and the National Cyber Security Centre’s overview of cyber-preparedness.

MDAG papers from meeting on 19 May published

We have published the meeting pack and correspondence from the Market Development Advisory Group (MDAG) meeting held on 19 May 2020.

Current consultations

Hedge Market Enhancements: industry consultation on securing access to better hedging data

Ending: 21/07/2020 5pm

Read more

UTS claim preliminary decision

Ending: 11/08/2020 5pm

Read more
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Tel: + 64 4 460 8860   Email: info@ea.govt.nz
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