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11 May 2021
Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.

Contents

Compliance investigation commenced and open for participants to join

Transpower New Zealand Limited as the grid owner is alleged to have breached clause 13.141(2) when it did not change its calculation of demand information that it provided to the pricing manager after the status of Alinta ENZ Limited’s kiln co-generation plant changed to a Type B industrial co-generation station.

The alleged breach has been calculated to have caused a significant market impact with generator’s being overpaid by $31.6M and purchasers overpaying by $32.6M.

Participants who consider they are affected by the matters being investigated may join as a party to the investigation. To join the investigation participants should notify the investigator no later than Monday, 24 May 2021. The investigator’s contact details are in the notice of investigation on our website.

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Transpower annual report on 10-year demand and generation forecast deferred until 31 October 2021

In its role as system operator, Transpower has been granted an exemption from clause 10.2 of the security of supply forecasting and information policy (SOSFIP, a document incorporated by reference in the Code).

This exemption enables Transpower to defer, by four months, its annual report that includes an assessment of the projected levels of surplus generation capacity over the next ten years. 

The annual report will be available by 31 October 2021 (normally available by 30 June).

A copy of the Gazette notice, including reasons for granting the exemption is available on our website.

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Revocation of Exemption 159

We have revoked exemption (No.159) for TrustPower Limited.

TrustPower Limited was exempt from complying with the obligation in clause 10.3(b) of the Code to quantify and calculate the conveyance of electricity at ICP 0001131999MLC77.

This exemption was revoked due to the decommissioning of the relevant ICP.

The revocation came into force on 8 May 2021.

The Gazette notice including our reasons for revoking the exemption is available on our website.
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Investigation reports released

The Authority has received consent from all parties to publish the investigator’s reports into the following investigations:
  • Meridian Energy Limited for alleged breaches of clause 13.5A(1) between 10 November 2019 and 16 January 2020
  • Contact Energy Limited for alleged breaches of clause 13.5A(1) between 11 November and 28 December 2019.
The reports are available on our website.
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Energy Excellence Awards

The Authority proudly sponsored the inaugural Outcomes Award at the 2021 New Zealand Energy Excellence Awards. The Outcomes Award celebrates better energy outcomes for all New Zealanders. Congratulations to The Lines Company who received the award for their great work on tackling energy hardship with its wrap-around customer-centric services. Congratulations to all other finalists and winners.

You can find out more about the awards and finalists on the Energy Excellence Awards website.

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Submissions published: Batteries as instantaneous reserve

The Authority has completed its consultation on battery energy storage systems offering instantaneous reserve.

The consultation closed on 6 May 2021 and we received 19 submissions. The Authority will now review submissions and decide the next steps for the project.

The submissions can be read on our website.

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Slides published: Internal transfer pricing briefing

Thank you to everyone who attended the recent briefing on the internal transfer prices and segmented profitability reporting consultation. The slides are now available on our website.

The consultation closes at 5pm on Tuesday, 18 May 2021.

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Current consultations

Extended reserve Code amendment

Ends today at 5pm

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Internal transfer pricing and profitability

Ending: 18/05/2021 5pm

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Proposed Actions to Correct: UTS 2019 - cross submissions

Ending: 19/05/2021 5pm

Read more
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