New EMI report shows ASX market making session bid-ask spreads
|
|
The Authority is currently working towards an enduring solution to market making of ASX traded New Zealand electricity futures. The current ASX market making arrangements include a requirement for quotes posted to conform to certain bid-ask spread requirements. The bid-ask spread of market-made buy and sell quotes must not exceed percent.
A new EMI report has been published measuring the range and the average of bid-ask spreads of NZ electricity futures. Using data from ASX’s Market Data Protocol, the Authority can take detailed measurements of the state of the market throughout each trading session.
The new report is freely available and can be used to monitor how the bid-ask spreads of futures contracts have varied over time, particularly as market making arrangements have changed.
We also recently released some market commentary that includes more examples of how market making obligations work during market making sessions.
|
|
Authority appoints Director Transmission Pricing Methodology
|
|
Rob Bernau, General Manager, Market Design has been seconded to the new position, Director, Transmission Pricing Methodology (TPM).
This is a 12-month fixed term role to ensure we have the necessary senior focus and support for TPM, as we work closely with Transpower towards implementing the TPM Guidelines, and respond to the legal challenges initiated by Trustpower. The Authority remains committed to putting a new TPM in place by April 2023. A new TPM will deliver significant benefits to consumers and support New Zealand’s transition to a low carbon economy.
Andy Doube will be General Manager, Market Design for the duration of Rob’s secondment. Andy has been working at the Authority since May 2019 in Market Design and will be known to many of you, primarily through the hedge market enhancement programme of work.
Rob and Andy started their new roles on Monday, 10 August 2020.
|
|
Transpower TPM newsletter
|
|
|
Transpower has started the project to develop a transmission pricing methodology based on the new guidelines. They are keen to keep stakeholders regularly updated on progress and to encourage participation when required.
Tarnspower have set up a Transmission Pricing Methodology Updates e-newsletter – visit Transpower’s website to subscribe. They will also publish the newsletter on their website.
|
|
System operator sensitivity schedules – proof of concept
|
|
|
|
|
|
|
Market participants rely on prices from the forecast market schedules to plan production and make consumption decisions. Under normal conditions, the forecast price can be relatively insensitive to small changes in forecast demand. However, at times of system stress these price forecasts can vary significantly with only small changes in forecast demand. Information is published via WITS to allow participants to estimate this price sensitivity themselves, though some market expertise and software investment is required to present the data in a meaningful way.
Transpower, in its role as system operator, is seeking feedback on a Proof of Concept of a sensitivity schedule that will allow all participants to easily visualise the sensitivity of forecast price to small changes in demand.
|
|
Stakeholder workshops: updating the medically dependent consumer and vulnerable consumer guidelines
|
|
|
We are hosting a series of workshops to inform the update of the guidelines for vulnerable and medically dependent consumers.
Based on stakeholder feedback we have decided to change the dates of the workshops for the coming six weeks.
We will hold a Zoom only session on 13 August to discuss the application of the guidelines and key policy questions.
Our fourth workshop will be a whole-day in-person event in Wellington on 9 September. At this workshop we will work through the strawman package in more detail.
|
|
Invitation to comment on an application for a type B industrial co-generation station
|
|
|
Alinta Energy has submitted an application for the Glenbrook industrial co-generation station to be approved as a Type B industrial co-generating station. We are assessing the application in accordance with Schedule 13.4 of the Code.
Any comments on the application should be sent to marketoperations@ea.govt.nz by 5pm on Tuesday, 22 September 2020. The application is available on our website.
|
|
Extension to UTS preliminary decision consultation period
|
|
|
The Authority has extended the UTS preliminary decision consultation period by one week. Submissions will now be accepted until 5.00pm Tuesday, 18 August 2020.
Cross-submissions will then be accepted from 19 August 2020 and will run for three weeks, closing at 5.00pm Wednesday, 9 September 2020.
The preliminary decision and information on making a submission is available here.
|
|
Open Networks forum – publication of presentations
|
|
|
The Authority has published the presentations made at the Open Networks standards forum on 5 August 2020.
|
|
IPAG meeting papers published
|
|
|
The papers from IPAG's meetings held on 10 June and 22 July have been published.
|
|
Proposed changes to the system operator procurement plan
Ending today at 5pm
|
|
|
UTS preliminary decision
Ending: 18/08/2020 5pm
|
|
|
Wholesale market information disclosure
Ending: 01/09/2020 5pm
|
|
|
Level 7, Harbour Tower, 2 Hunter Street, PO Box 10041, Wellington 6143, New Zealand
Tel: + 64 4 460 8860 Email: communications@ea.govt.nz
|
|
|
|
|
