Update: consumer care guidelines
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Thanks to everyone who provided feedback on the draft consumer care guidelines. We have reviewed all the submissions and made some revisions to the guidelines as a result. There will be a two-week technical consultation on the revised guidelines, from 23 February to 9 March 2021.
The technical consultation will allow stakeholders to comment specifically on the technical drafting and practicability of the consumer care guidelines before they are finalised and published. The Authority will not consider any new policy issues.
At 10.30am on Friday 26 February there will be a webinar to discuss the changes made to the consumer care guidelines, and the next steps in the implementation process. To register, please email mdvc.guidelines@ea.govt.nz.
The draft guidelines will be published next week along with more information about the changes made and the technical consultation.
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Rulings Panel decision: Haast v Genesis – alleged breach of information disclosure obligations (cl 13.2A)
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The Rulings Panel determined that Genesis Energy Limited (“Genesis”) did not breach clause 13.2A; the requirement for participants to make disclosure information readily available to the public. Disclosure information is defined in the Code as information which the “…participant expects, or ought reasonably to expect, if made available to the public, will have a material impact on prices in the wholesale market”.
Haast Energy Trading Limited alleged that information Genesis received on forecast interruptions of gas supply to Genesis’ generators was disclosure information.
The Rulings Panel did not consider that the information was disclosure information. The Panel found that it had not been established that, if disclosed, the information would have had a material impact on prices in the wholesale market. The Rulings Panel also found that even if it was disclosure information, clause 13.2A(2)(c) applied, and Genesis was bound by a legal obligation to its gas supplier to keep the information confidential.
The Rulings Panel made recommendations in relation to possible amendments to the Code, including lowering the threshold for “disclosure information”, and these are currently being considered by the Authority.
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Stress test scenarios for the April - June quarter 2021
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The stress test scenarios published on the Authority's website will apply for the April - June quarter of 2021.
As previously advised in Market Brief, the energy shortage scenario has changed from an average spot price of $250/MWh to $400/MWh for the April - June quarter. Please note, while the Authority anticipates a potential increase in spot price volatility, the Authority has not forecast average spot prices. Stress test scenarios are hypothetical and are not forecasts. They are designed to ensure disclosing participants have considered the spot price volatility which may arise from rare, yet possible, events.
The stress-testing regime requires disclosing participants in the wholesale electricity market to apply a set of standardised stress tests to their market position in a rare, yet possible scenario, and report the results to their Board and to the NZX as the independent registrar appointed by the Authority.
Questions about the stress tests can be directed to marketoperations@ea.govt.nz please include ‘stress test’ in the subject line.
For further information please see our website. Stress test results can be found here.
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Electricity Authority and Transpower joint briefing on information disclosure – 3 March 2021
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The Authority and Transpower are holding a joint briefing on information disclosure from 10am-12pm on Wednesday, 3 March 2021.
In January the Authority announced a decision to amend the Electricity Industry Participation Code 2010 (Code) to improve the availability of thermal fuel information. The Code amendment which comes into force on 1 April 2021 imposes obligations on major participants (a newly defined term), to report to the Authority on how they are meeting their disclosure obligations under clause 13.2A of the Code.
The Authority will provide an overview of these new rules. Transpower will provide an update on new guidance for participants on what outages might impact the system operator’s ability to meet its Principal Performance Obligations.
We encourage all participants who will be affected by the Code amendment to attend. Please email WMID@ea.govt.nz to register your interest in attending in person or by video conference.
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Raising consumer awareness of Utilties Disputes and Powerswitch services
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On 1 April 2021 a Code amendment takes effect which requires retailers and distributors to raise awareness of Utilities Disputes and Powerswitch in certain situations.
The Authority has published guidelines to support participants to comply with this Code amendment.
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Reminder: considering future generation requirements in design of substation switchgear and network connections
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Last month the Authority issued a memo reminding distributors to consider the possibility of future generation when connecting sites with multiple connections to the network.
The memo also recommends participants ensure connecting consumers are aware of the costs of relocating or reconfiguring metering should they decide to connect generation in the future.
Forward planning and clear communication can help ensure connecting consumers are able to make the best decisions for their current and future needs.
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Proposal to replace the high standard of trading conduct provisions with a new rule
Ending: 23/3/2021 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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