Final decision on actions to correct the 2019 UTS
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The Authority has decided on actions to correct the 3-27 December 2019 Undesirable Trading Situation. The decision paper is available here.
The Authority has decided to reset prices between 3 and 27 December 2019.
The Authority is working with NZX and Transpower to implement the actions to correct.
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Decision on the extended reserve Code amendment
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The Authority has decided to amend the Electricity Industry Participation Code (Code) to enable the transition of the automatic under-frequency load shedding (AUFLS) provision in the North Island to the system operator’s proposed 4-block scheme.
As the New Zealand economy moves towards greater de-carbonisation and electrification, and the government’s climate change targets encourage further renewable generation investments, the ability of the grid to withstand a sudden, significant loss of supply will likely diminish. The AUFLS scheme plays a critical role in preventing cascade failure following a significant loss of supply. It is therefore essential that the scheme is flexible and reliable now, and in the future to enable New Zealand to meet its climate change targets without adversely impacting security of supply.
The amendment will:
- Deliver the enhanced system security benefits of the 4-block AUFLS scheme as quickly as practicable.
- Provide a compliance regime that targets an aggregate, island-wide AUFLS provision.
- Allow the system operator and individual AUFLS providers to agree an AUFLS provision proposal that maintains overall system security whilst acknowledging the physical limitations of the provider’s network.
- Provide parties that hold current AUFLS provision exemptions with a path to compliance with their AUFLS obligations.
- Provide a secure technical basis for any enhancements to the AUFLS scheme that may be identified in the future.
The system operator will now undertake a consultation on the AUFLS technical requirements that will be incorporated into the Code.
A copy of the Authority’s decision can be found on our website.
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Registrations of interest for commercial market-making
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The Authority has released a services contract opportunity for commercial market-making. The Registration of Interest (ROI) forms the first of a two-stage procurement process.
The Authority would like to hear from potential commercial scheme service providers - parties interested in providing commercial market-making services under the commercial scheme.
The ROI requests interested parties to register their interest in the procurement, and to provide information that will allow the Authority to shortlist potential suppliers. Shortlisted suppliers will then be invited to progress to the second stage of procurement, the Request for Proposal.
It is important that market-making services support a robust forward price curve and enable efficient risk management for the long-term benefit of consumers.
The ROI is available on GETS.govt.nz the New Zealand Government’s procurement portal and the Authority’s website.
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Investigation of an alleged breach by Transpower New Zealand Limited as the grid owner
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The Authority has commenced an investigation into an alleged breach of the code by Transpower New Zealand Limited as the grid owner.
On 9 June 2020, the grid owner self-reported a breach of clause 4(4)(a) of Technical Code A of Schedule 8.3. The grid owner is alleged to have breached the Code when it carried out incorrect wiring that caused a trip of Contact Energy’s Ohaaki generation plant on 25 October 2019.
Any participant that considers it is affected by the matter being investigated, and that wishes to become a party to this investigation, should notify the investigator within 10 working days after the date on which this notice is published.
The investigator can be contacted, citing the reference 2006GROW1 in the subject line, by email at compliance@ea.govt.nz
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New exemptions granted and gazetted
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The Authority has granted and gazetted three new exemptions from complying with certain obligations in the Code:
- Advanced Metering Services Limited (No. 297) for:
- clause 5(b)(xii) of Schedule 10.8 of the Code to ensure that the memory and clock of the metering device continues to operate for at least 15 days after power is lost to the device relating to ARC metering installations only; and
- clause 21 of Schedule 10.7 to not certify a metering installation if the metering installation exceeds the maximum permitted error in Table 1 of Schedule 10.1 relating to ARC metering installations only.
- ARC Innovations Limited (No. 299) for:
- 4(1)(a) of Schedule 10.7 to ensure that the sum of the measured error and uncertainty does not exceed the maximum permitted error in Table 1 of Schedule 10.1; and
- 4(1)(b) of Schedule 10.7 to ensure that the design of the metering installation ensures that the sum of the measured error and does not exceed the maximum permitted error in Table 1 of Schedule 10.1.
- Intellihub Limited (No. 310) for:
- clauses 8(2)(a), 9, 10, 11(3)(a), 11(4)(a), 11(4)(c), 11(4)(d), 11(5) and 41(1) in Schedule 10.7 of the Code to conduct certification testing, issue a certification report and affix a certification sticker to the metering installation.
The Gazette notices, including reasons for the approval, are available on the exemptions page of the Authority’s
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Distribution networks workshop - expressions of interest sought
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Distribution networks have a critical role to play in supporting New Zealand’s transition to a low emissions economy through their infrastructure that connects electricity users with electricity producers and maintaining the reliability of electricity supply.
The Authority is hosting a distribution networks hui in Wellington on 12 October 2021 to share information on developments and trials as the electricity industry evolves.
Further details and the focus of the hui is set out in the draft agenda and will include:
- non network alternatives
- EV trials
- microgrids.
Please register if you wish to attend this event.
This workshop is part of the Authority’s wider programme of work with distribution networks to better support the electricity sector’s transition to a low-emissions economy, while continuing to provide long-term benefits to consumers.
This hui was deferred from 29 June 2021 due to the Covid alert level in Wellington that week.
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Electricity Authority orders review under the Electricity Industry Act 2010
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The Electricity Authority has ordered a review of the 9 August 2021 electricity cuts. A media release and the terms of reference for the review are available on our website.
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Improving the framework for the Authority's information gathering
Ending: 24/8/2021 5pm
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Draft determination of the causer of the 2 May 2021 under-frequency event
Ending: 24/8/2021 5pm
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Updating the regulatory settings for distribution networks
Ending: 14/9/2021 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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