Wholesale market information disclosure obligations update
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Thank you to all those who took the time to submit on the Authority’s recent consultation, Wholesale market information disclosure – review of thermal fuels.
We are proposing updates to the guidelines for participants
The Authority’s proposal to update the guidelines for participants on wholesale market information disclosure obligations was well received. We are now running a short consultation with stakeholders on proposed wording to update these guidelines, open for two weeks and closing at 5pm, Tuesday 3 November 2020.
Feedback received during the consultation will help inform the Authority’s decision on whether to proceed with the changes in December 2020. You can read the consultation paper here.
We are also scoping a centralised disclosure website
Our proposal to clarify where parties should disclose fuel constraint information (for example, a centralised disclosure website) was also well received.
We are now scoping the functionality that website will need and want to hear from stakeholders about what you would find useful. Please contact WMID@ea.govt.nz if you would like to be involved in a scoping meeting.
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Retailer debt deferral scheme
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The Authority is closing the Retailer Debt Deferral Scheme (Scheme).
The Scheme was enacted by an urgent amendment to the Electricity Industry Participation Code 2010 (Code) on 20 May 2020 in order to protect against the risk of significant retailer exit due to the extraordinary circumstances resulting from NZ’s COVID-19 lockdown. Following recent consultation, the Authority is of the view the Scheme is no longer needed.
The Scheme will close on Wednesday, 18 November 2020.
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Call for nominations for Standing Data Formats Group (SDFG)
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We’re calling for nominations for two trader members, three distributor members, and an MEP member to join the Standing Data Formats Group (SDFG).
The SDFG provides independent advice to the Authority on information exchange protocols between:
- Participants and the market operation service providers
- Participants and consumers
- Participants and third party providers
Nominations and accompanying documents should be emailed to marketoperations@ea.govt.nz, with ‘Nomination for SDFG membership’ in the subject line by 5pm on Tuesday, 17 November 2020.
Members whose terms are expiring are eligible to apply for reappointment.
Further information about the SDFG, nomination process and accompanying documents are available on our website.
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Final decision for Top Energy exemption from Part 3 of the Act
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On 7 July 2020 the Authority released a draft decision paper on Top Energy’s application for an exemption under section 90 of the Act. The decision would provide for a time-limited exemption with conditions to support competition in the network support market.
We have now finalised our decision granting a time-limited exemption with conditions.
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Supplementary consultation: MDAG's review of the High Standard of Trading Conduct provisions
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In February 2020, the Market Development Advisory Group (MDAG) consulted on a proposal to replace the current high standard of trading conduct provisions (clauses 13.5A and 13.5B) in the Code with new trading conduct provisions.
After considering feedback from submissions and the findings from the evaluation panels process, the MDAG has changed some aspects of its original proposal. The MDAG is seeking your feedback on these changes. Feedback from this short consultation will inform the MDAG’s recommendations to the Authority. The MDAG’s proposal is expected to improve the efficiency of wholesale electricity spot prices in circumstances where competition is weak.
The consultation document will be made available on our website later this week. If you would like to be notified when the consultation launches please email MDAG@ea.govt.nz. Market participants who submitted feedback during the consultation in February 2020 will be notified directly.
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Submissions published: Removing requirement for FTR manager to calculate the amount of LCE to be applied to FTRs
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In August 2020 the Authority published a consultation paper revoking schedule 14.3.
Submissions closed on Tuesday, 29 September 2020 and eight submissions were received.
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Workshop slides published: Raising consumer awareness of Utilities Disputes and Powerswitch services
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The Authority held a stakeholder workshop on Thursday, 15 October 2020 to discuss guidance to help retailers and distributors comply with the upcoming Code requirements to raise awareness of Utilities Disputes and Powerswitch.
The slide pack from this workshop is now available.
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Reminder: Regulatory change affecting traders of electricity contracts on the ASX
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The Authority is gathering more and better-quality data on risk management contracts as part of its ongoing work to make improvements to the wholesale electricity market.
In October, a Code change will come into effect requiring participants trading electricity contracts on the ASX to give permission for their de-anonymised trading data to be shared by the ASX with the Authority.
Many participants have agreed to this arrangement on a time limited basis already. The Code change will make this an ongoing requirement from Thursday, 29 October 2020.
If you trade electricity contracts on the ASX you need to:
- sign a consent form to share your data with the Authority, and return it to the ASX and the Authority
- ensure you have appropriate arrangements in place with your broker and other market intermediaries including providing your account identifier to the ASX.
The consent form is available on the Authority’s website and should be returned as soon as possible and before 5pm on Tuesday, 27 October 2020, otherwise you risk being non-compliant with the Code. At this stage this Code change does not remove participants’ obligations to report trades onto the Hedge Disclosure Website (Subpart 5 of Part 13 of the Code).
Please contact HME.feedback@ea.govt.nz if you have any questions.
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Revised guidelines on wholesale market information disclosure obligations
Ending: 3/11/2020 5pm
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Guidelines for raising consumer awareness of Utilities Disputes and Powerswitch services
Ending: 10/11/2020 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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