Consumer care guidelines: technical consultation
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Thanks to everyone who provided feedback on the draft consumer care guidelines. We have reviewed all the submissions and revised the guidelines as a result. There will now be a two-week technical consultation on the final draft of the guidelines before they are finalised and published.
During the technical consultation we welcome comments on the technical drafting of the consumer care guidelines. The Authority will not consider any new policy issues.
At 10.30am on Friday 26 February there will be a webinar to discuss the changes made to the consumer care guidelines, and the next steps in the implementation process. To register please email mdvc.guidelines@ea.govt.nz
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Distribution pricing scorecards 2020
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The Authority has published the 2020 summary assessment of electricity distribution pricing and the individual scorecards for each distributor.
The Authority introduced annual pricing scorecards in 2019, establishing a new way to monitor and evaluate distribution pricing methodologies.
Pricing that aligns with the distribution pricing principles will drive efficient use of distribution networks and efficient investments in distribution networks and distributed energy resources (DER), support realisation of the gains of the new transmission pricing methodology, and support a least-cost transition to a low emissions economy.
Distribution pricing is one of the core elements in New Zealand’s transition to a low-emissions economy, as the system seeks to accommodate increased DER, electric vehicle uptake and the electrification of process heat. The Authority has a role in ensuring this transition occurs as efficiently as possible and is therefore as affordable as possible for New Zealand consumers.
The aim of the assessment is to highlight good practice, identify weaknesses and gaps, and suggest opportunities for improvement. The Authority reviews distributors’ assessments of current circumstance; the efficiency of price structures; the strategies and implementation of distribution pricing reform; and the management of consumer impacts arising from changes to pricing.
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Update on Aurora's distribution pricing review
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The Authority has responded to concerns raised by Aurora consumers about how Aurora’s prices balance between its regions. These concerns come in the context of likely substantial price increases on Aurora’s network as a result of its application for a new price path to the Commerce Commission.
The Authority has checked Aurora’s regional pricing. We commissioned an independent review of Aurora’s approach to setting regional prices and specifically whether it is consistent with the Authority’s distribution pricing principles.
The review found Aurora’s overall approach to regional distribution pricing is sound and largely reflects the differing costs across its three regions. However, the review did find some areas where Aurora can make improvements, which will see future costs shared in a way that more closely reflects the cost of providing services to each region.
The Authority is pleased to see Aurora has already committed to making immediate changes to its regional distribution pricing by 1 April 2021, with more to come by April 2022.
We will work closely with Aurora as they make these changes, check they are tested and encourage Aurora to keep its community regularly updated about the changes.
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Compliance and enforcement - 2020 in review
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As the regulator of New Zealand’s electricity system and markets, it is a key priority of the Electricity Authority to actively monitor behaviour, enforce the rules and hold industry to account. This ensures consumers continue to receive this essential service.
The Authority grew its investigation team over 2020 so that compliance and enforcement could remain a key priority area. 2020 saw 121 reported breaches.
Some of the compliance and enforcement action taken by the Authority and the Rulings Panel in 2020 is listed below, with a detailed review of each decision available on our website:
- The Rulings Panel ordered Transpower to pay $75,000 for causing a major power outage that resulted in a loss of supply to Hamilton, Cambridge, the Coromandel Peninsula and the wider Waikato for nearly two hours.
- The Rulings Panel ordered Transpower to pay a total of $300,000 for multiple breaches, in its capacity as both system operator and grid owner.
- The High Court upheld an Authority decision to dismiss a complaint by Intellihub Ltd.
- The Authority completed its investigation into repeated failures by Auckland Commercial Solar Ltd and approved the terms of a settlement between Auckland Commercial and Energy Clearing House Limited.
- The Authority completed its investigation into a breach by Transpower with high potential market and security impact, and approved settlement terms.
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Reconciled annual levy rates for year ending 30 June 2020
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We have reconciled the levy rates for the financial year ending 30 June 2020, in accordance with regulation 11 of the Electricity Industry (Levy of Industry Participants) Regulations 2010.
The reconciled levy rates have been gazetted and are available on our website
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Correspondence relating to market making
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We have published a letter to Genesis regarding their recent market making performance.
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Reminder: Electricity Authority and Transpower joint briefing on information disclosure - 3 March 2021
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The Authority and Transpower are holding a joint briefing on information disclosure from 10am-12pm on Wednesday, 3 March 2021.
In January the Authority announced a decision to amend the Electricity Industry Participation Code 2010 (Code) to improve the availability of thermal fuel information. The Code amendment which comes into force on 1 April 2021 imposes obligations on a new class of participants, called major participants, including an obligation to report to the Authority on how they are meeting their disclosure obligations under clause 13.2A of the Code.
The Authority will provide an overview of these new rules. Transpower will provide an update on new guidance for participants on what outages might impact the system operator’s ability to meet its Principal Performance Obligations.
We encourage all participants who will be affected by the Code amendment to attend. Please email WMID@ea.govt.nz to register your interest in attending in person or by video conference.
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Consumer care guidelines
Ending: 9/3/2021 5pm
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Proposal to replace the high standard of trading conduct provisions with a new rule
Ending: 23/3/2021 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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