Supplementary consultation: MDAG’s review of the High Standard of Trading Conduct provisions
|
|
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 Electricity Industry Participation Code 2010 with new trading conduct provisions.
After considering feedback from submissions and the findings from the evaluation panel’s 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.
We welcome your feedback. The consultation period closes at 5pm on Thursday 5 November.
|
|
Market making review: Publication of full decision paper
|
|
The Authority is pursuing an enduring market making approach that secures the benefits of the current arrangements while enhancing efficiency, improving trust and confidence in the market, and facilitating a service-oriented approach. This approach will:
- transition to an incentivised market making arrangement where market making services are performed by providers compensated on commercial terms by all generators and purchasers (including the existing market makers); and
- ensure the integrity of market making services is maintained in the transition period through a combination of mandated market makers and at least one commercial provider.
The transition period will likely take several years, and it’s also possible the Authority will decide it is appropriate that physical participants provide market making services indefinitely.
Today we have published a paper describing the Authority’s high-level decision. The detailed design will be developed as part of the implementation process.
The paper sets out our implementation pathway and the priorities with which we are implementing different aspects of our decision. Throughout the implementation process stakeholders will be invited to engage with us and help shape our decision-making.
|
|
Compliance investigations commenced and open for participants to join
|
|
The Authority has commenced investigations into the following alleged breaches of the Code.
Genesis Energy Limited
Genesis Energy is alleged to have breached clauses 13.2(1) and 13.225(1)(b) concerning duplicated ASX trade disclosures related to December 2019, January 2020, March 2020, April 2020 and mid-June 2020.
Transpower New Zealand Limited as the grid owner
The grid owner is alleged to have breached clause 4(4)(a)(ii) of Technical Code A of Schedule 8.3 when it failed to design and commission a protection system at the Greytown substation so that it would be selective when operating and disconnect the minimum amount of assets. Upgrade work in September 2019 caused losses of supply in September 2019 and February 2020.
Participants who consider they are affected by the matters being investigated may join as a party to either of the investigations. To join either of the investigations, participants should notify the investigators no later than, Friday 6 November 2020.
The investigators contact details are in the notices of investigation on our website.
|
|
Through a series of collaborative workshops and targeted engagement we have reviewed the vulnerable consumer and medically dependent consumer guidelines. We have worked closely with retailers, consumer representative groups, government and social agencies. This collaboration has led to the design of a single set of ‘consumer care guidelines’ to replace the existing vulnerable consumer and medically dependent consumer guidelines.
The consumer care guidelines have been designed to support retailers and protect domestic consumers by focusing on access to a constant electricity supply suitable for all consumers’ needs.
The consultation period will start on Friday, 30 October 2020 and end on Friday, 27 November 2020. The consumer care guidelines will be available on our website from that date. We will announce the consultation launch on our social media channels too. Follow us on Twitter and LinkedIn so that you receive a notification about this, and other Authority news.
We will be holding three workshops during the consultation period. At these workshops we will answer questions about the consumer care guidelines and discuss the differences between the existing and proposed guidelines.
The workshop details are as follows:
- Auckland, Tuesday 3 November 1-3pm
- Wellington, Thursday 5 November 10am-12pm
- Christchurch, Wednesday 11 November 9.30-11.30am
Registration is essential, as numbers may be limited. Please see our website for more information, and please do not book any travel arrangements until you have received a confirmation of registration from the Authority.
To register, please email mdvc.guidelines@ea.govt.nz with “Consultation workshop” and the preferred location (Auckland, Wellington or Christchurch) in the subject line.
|
|
Glenbrook Power Station approved as a Type B industrial co-generation station
|
|
The Authority has approved an application for the Glenbrook Power Station to be a Type B industrial co-generating station. This approval is effective from 3 November 2020.
An updated list of approved co-generators is available on our website.
|
|
Published: MDAG meeting papers
|
|
|
The meeting pack from the Market Development Advisory Group (MDAG) meeting on 14 October 2020 has been published.
|
|
Regulatory change affecting traders of electricity contracts on the ASX – final reminder
|
|
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 two days from now on Thursday 29 October 2020, 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.
If you trade electricity contracts on the ASX and haven’t done so already, 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 before 5pm today 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.
|
|
Reminder: Consultation on revised guidelines on wholesale market information disclosure obligations
|
|
|
Last week we released a short consultation for stakeholders to provide feedback on proposed wording to update the wholesale market information disclosure guidelines. We encourage you to respond before the deadline next week – 5pm, Tuesday 3 November 2020.
|
|
|
|
|
|
Revised guidelines on wholesale market information disclosure obligations
Ending: 03/11/2020 5pm
|
|
|
MDAG’s review of the High Standard of Trading Conduct provisions
Ending: 05/11/2020 5pm
|
|
|
Guidelines for raising consumer awareness of Utilities Disputes and Powerswitch services
Ending: 10/11/2020 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
|
|
|
|
|
