Authority investigates internal transfer pricing and profitability of large generator-retailers
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The Authority is investigating whether additional disclosures about transfer pricing or profitability or other regulatory interventions are required in the wholesale electricity market. The Authority has sent letters to the five largest vertically integrated generator-retailers asking them to voluntarily provide information on their internal transfer pricing. These requests are part of a programme of work that aims to promote competition, trust and confidence in the wholesale market.
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Electricity Authority and system operator joint development programme update
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The Electricity Industry Participation Code 2010 (Code) requires the Authority and the system operator (Transpower) to agree and publish a joint development programme at least annually. We have recently made updates to the programme that reflect progress, changes to priorities, and other project agreements that have occurred since the last publication in August 2019.
The current programme is available below. Please email any questions about the programme to info@ea.govt.nz.
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Code Amendment: Electricity Industry Participation Code Amendment (Improving Trader Default Process) 2020
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On 17 September 2020 the Electricity Industry Participation Code Amendment (Improving Trader Default Process) 2020, will come into force.
The amendment relates to Parts 11 and 14 of the Code.
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Closure of investigations
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We have discontinued the following investigations into alleged breaches of the Code.
Pioneer Energy Limited (Pioneer)
Pioneer was alleged to have breached clause 10.33A(1)(c) of the Code when it connected an installation control point (ICP) at a retirement village without written approval from the network owner, WEL Networks.
Pioneer denied the breach. Although it was the nominated retailer, work was carried out without its knowledge or approval.
The investigation identified issues around the processes and documentation used for making electrical connections.
Safety issues were also found which fall outside the scope of the Code. These have been referred to the relevant authorities for consideration.
WEL Networks Limited (WEL)
WEL was alleged to have breached clause 11.4(3) of the Code when it changed the installation control point (ICP) identifier for the ICP associated with a builder’s temporary supply (BTS) in a retirement village.
WEL accepted a technical breach of this provision as it was attempting to resolve a situation where the ICP had been connected to two different transformers.
The investigation identified issues around the processes and documentation used for application for new electrical connections.
Safety issues were also found which fall outside the scope of the Code. These have been referred to the relevant authorities for consideration.
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Submissions published: Proposed changes to the system operator procurement plan
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We have published the two submissions we received on our consultation paper on proposed changes to the system operator’s procurement plan. We will consider making a decision on the proposal once the system operator has had an opportunity to make a cross-submission.
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MDAG meeting papers published
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We have published the meeting pack from the Market Development Advisory Group (MDAG) meeting held on 4 August 2020.
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Wholesale market information disclosure
Ending: 01/09/2020 5pm
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Integration of hosting capacity into Part 6 of the Code, sunset clause
Ending: 01/09/2020 5pm
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Removing requirement for FTR manager to calculate the amount of LCE to be applied to FTRs
Ending: 29/09/2020 5pm
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Level 7, Harbour Tower, 2 Hunter Street, PO Box 10041, Wellington 6143, New Zealand
Tel: + 64 4 460 8860 Email: communications@ea.govt.nz
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