Update to internal transfer pricing and profitability consultation paper
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The internal transfer pricing and profitability consultation paper was released on 8 April 2021. Since the release of that paper, the Authority has amended its proposed Code changes to include a bespoke audit provision. The updated consultation paper is available here.
These provisions can be found from clause 13.262 onwards in Appendix A which contains the proposed Code amendment. The Authority considers the proposed audit provisions will enhance trust and confidence in the proposed reporting requirements, and is seeking stakeholder feedback on them. Please provide any comments on these additional provisions when making a submission (in particular any response on Question 24).
R code that illustrates how benchmark internal transfer prices were computed by the Authority can be found here.
We will be holding a public briefing on the consultation from 9.30–10.30am on Thursday, 29 April 2021. Please email wholesaleconsultation@ea.govt.nz to register your interest in attending in person or by video conference.
The project team is also available to hold individual briefings with stakeholders between 3 and 14 May 2021. Please email wholesaleconsultation@ea.govt.nz to arrange a time and date.
The consultation closes at 5pm on Tuesday, 18 May 2021.
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New Rulings Panel website
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The Rulings Panel now has its own website. The Rulings Panel is an independent body that assists in enforcing the Electricity Industry Participation Code by dealing with complaints about breaches of the Code, appeals against certain decisions and resolves certain disputes relating to the Code.
The website features current cases, decisions, procedures and performance reports.
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Use of recorded terms in Default Distributor Agreements
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In July 2020, the Authority revised Part 12A of the Code and introduced the Default Distributor Agreement (DDA) template to better promote competition in and efficient operation of the electricity industry for the long-term benefit of consumers.
Concerns have been raised with the Authority on the use of recorded terms in clause 24.5 of some distributors' published DDA. Recorded terms are not to be used as a mechanism to introduce other rights and obligations, especially those covered elsewhere in the Code or DDA template.
The Authority is looking into an alleged breach against one distributor and is in discussion with a number of distributors regarding this matter.
Given these concerns, the Authority is reminding distributors to ensure that the terms of their published DDAs are compliant with the Code. The Authority will be in contact with distributors where potential non-compliance is identified.
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Stakeholder engagement 2020 survey results published
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The Authority is committed to transparent and accountable engagement with stakeholders. Effective engagement with a wide variety of stakeholders is important for us to design and implement regulations that get the best outcomes for consumers.
To track our progress, the Authority conducted a stakeholder survey in 2020. Thank you to those who took the time to complete the survey.
A summary of the survey findings is published on the Authority’s website.
The stakeholder survey will be repeated later this year.
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Real-time pricing online session - Wednesday 5 May
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The Authority, alongside the system operator and NZX, are hosting monthly online engagement sessions covering the market changes being delivered by the real time pricing (RTP) project.
In our next session, we will introduce scarcity pricing concepts. This session will provide the background necessary for the system operator to discuss scarcity implementation in the following engagement session.
Subject: Scarcity pricing principles
Date: Wednesday, 5 May 2021
Time: 3–4pm
If you would like to attend this session, and haven’t yet registered with the Cognise learning platform, please email RTP@ea.govt.nz with the following information:
- Full name
- Email address
- Contact number
- Organisation
- Role
More details about the session are available on our website.
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Work programme report for the eight-month period to 28 February 2021
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We have published our work programme report for the period covering 1 July 2020 to 28 February 2021. This is a progress report against the work programme we published in October 2020.
The 2020/21 work programme and the four-month, and eight-month reports are available on our website.
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IPAG meeting papers published
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The agenda and minutes from IPAG’s 27th meeting held on 24 March 2021 have now been published on our website.
The IPAG heard from Wellington Electricity regarding their trials and what they have learnt as well as their current work. The IPAG also met with Transpower to discuss cost allocation. The meeting finished with a discussion on the draft IPAG recommendations memo to the Authority and slide pack.
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Proposed Actions to Correct: UTS 2019
Ending: 27/04/2021 5pm
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Battery energy storage systems offering instantaneous reserve
Ending: 06/05/2021 5pm
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Extended reserve Code amendment
Ending: 11/05/2021 5pm
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Internal transfer pricing and profitability
Ending: 18/05/2021 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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