Consultation on improving the framework for the Authority's information gathering
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Today the Authority begins consulting on a proposed amendment to the Electricity Industry Participation Code 2010 (Code) to put a standardised framework in place for the ongoing provision of information to the Authority.
The Authority already collects information on a regular basis from participants via a range of approaches including using voluntary requests, under specific Code obligations, or under section 46 of the Electricity Industry Act 2010. However, there are shortcomings with these approaches, both for participants, and the Authority.
The proposed Code amendment’s objective is to help the Authority be sufficiently informed to perform its functions, and to make it easier for participants to engage with the Authority around its information needs, and efficiently provide ongoing information to the Authority.
The Authority will be consulting for six weeks on these changes. More information on making a submission is available on the Authority’s website.
The Authority will hold an online briefing on the proposal at 11.00am on Tuesday, 20 July 2021. Please register your interest in attending at infoframework@ea.govt.nz and you will receive information on how to join the briefing.
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Transpower submits proposed TPM to the Authority
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Transpower has submitted a proposed Transmission Pricing Methodology (TPM) to the Electricity Authority as provided for in the Electricity Industry Participation Code 2010 (Code).
The Authority will now review the proposed TPM and may refer it back to Transpower for further consideration as per the process set out in the Code. The Authority intends to consult on the full proposed TPM later in 2021, and we look forward to receiving submissions at that time.
Once consideration of all submissions received is complete, the Authority’s Board will make a final decision on whether to incorporate the proposed TPM into the Code.
Should the Board decide to incorporate a new TPM into the Code, we would be aiming for new transmission prices under any such new TPM to come into effect on 1 April 2023. We note there are still several steps remaining in the process which could impact on this. Any next steps (and consequent timing) will of course depend upon the feedback we receive in consultation, and any final decision by the Authority Board.
The Authority is grateful to Transpower for its work done to date and we look forward to working with them in the next phase.
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Implementing the consumer care guidelines
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The consumer care guidelines took effect on 1 July 2021. The Authority expects all retailers to align with them by 31 December 2021.
The guidelines include recommendations on information disclosure. The first disclosure, an initial alignment plan, is due to the Authority by 31 July 2021. The Authority has produced a practice note that sets out when and how to provide information disclosures, which is available here. Questions regarding the disclosure can be sent to mdvc.guidelines@ea.govt.nz.
As signalled in March, the Authority will monitor retailers’ alignment with the guidelines and review the outcomes of the guidelines before deciding next steps.
The Authority is now focused on developing information, including documents that will be published on our website and elsewhere, to help consumers, health practitioners and support agencies understand the consumer care guidelines.
The Authority has decided not to hold additional workshops at this stage. MBIE continues to lead a programme of work around energy hardship, drawing from the Electricity Price Review’s findings and recommendations, and the government’s response to those recommendations. You can read more about MBIE’s energy hardship work on their website.
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Decision on amending the Code to allow energy storage systems to participate in the reserves market
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The Authority has decided to amend the Code to enable some energy storage system (ESS) owners to offer injectable instantaneous reserve.
The amendments will significantly benefit consumers in the long term, improving competition in the electricity industry by enabling new types of technology to participate in the instantaneous reserve market, and the reliable supply of electricity by broadening the range of technologies able to provide instantaneous reserve.
New technologies, particularly battery ESS at this time, foreshadow potentially more diverse and capable resources that can provide instantaneous reserve, and potentially a range of other market services.
The amendment lays essential groundwork so that electrochemical battery and other forms of ESSs will be able to participate in the ancillary service market for reserves. Details of the decision are set out in a draft Decision Paper published today and follows the consultation process in April and May 2021. A complementary amendment is now needed to the ancillary services procurement plan, to be developed and consulted on by the system operator, and the Authority, in coming months. Our current plan will see both amendments coming into force around 1 April 2022.
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System operator AUFLS data portal roll out
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The Electricity Authority consulted on Code changes in May 2021, which are seeking to pave the way for migrating to a new 4-block AUFLS scheme from the current 2-block AUFLS scheme. This will provide more flexibility and resilience to the New Zealand power system as it evolves.
Ahead of this migration, we have been working with the System Operator to develop a data portal as a means of better capturing how AUFLS is being provided across the North Island on an annual basis, with the expectation the portal will be used for the coming AUFLS data submission period starting January 2022.
The System Operator commenced the roll-out to the affected North Island Distributors on 1 July. To ensure the System Operator provides you with the information and support you need to be able to successfully use the portal they are hosting an online Teams training workshop on Monday 12 July 2021, 2.00-3:30pm, and Thursday 15 July 2021, 1.00-2:30pm. If you have not done so already, please confirm your interest to attend one of these sessions to the AUFLS Project Manager at Marije.Postma@transpower.co.nz
For further information on the AUFLS Project and the roll-out, please visit the Transpower Website.
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2021/22 Statement of Performance Expectations
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We have published our Statement of Performance Expectations (SPE) for the 2021/22 financial year.
The SPE contains information about our programmes and business-as-usual functions, as well as our forecast financial statements. The SPE is available to view on our website.
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New Statement of Intent 2021-2025 released
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We have published an updated version of our Statement of Intent (SOI) for the years 2021-2025. This is a refinement of our SOI that was published in 2020.
Our strategy, with our five sector ambitions, remains unchanged. The ambitions focus us to ensure electricity regulation creates a platform for economic recovery, accelerating growth and wider benefits for New Zealand.
The updated SOI sets out how we will operationalise and measure these ambitions over the next four years, and further highlights the linkages between our sector ambitions and our statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry in New Zealand for the long-term benefit of consumers.
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2021/22 Annual Corporate Plan
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The Authority is focused on continually improving how it reports its performance to the Minister and stakeholders. As such, we have developed the Annual Corporate Plan - which sets out our activities for 2021/22 that will promote our strategic priorities, address regulatory risks and harms, and deliver sector outcomes.
This plan should be read alongside our Statement of Intent 2021-2025, which is our public accountability document required under sections 139 and 141 of the Crown Entities Act 2004. It outlines our long-term strategic intentions for the period 1 July 2021 to 30 June 2025.
This year’s reporting focuses on demonstrating how the Authority is delivering against its strategic ambitions (outlined in our Statement of Intent 2021-2025) and statutory objective.
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Commercial market-making scheme: levy consultation submissions published
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The Authority has published the submissions received on the commercial market-making scheme: levy consultation.
Thank you to everyone who provided feedback on the proposal.
The Authority will now review submissions before reporting to the Minister of Energy and Resources with our recommended appropriation request.
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Permanent change to definition of disclosure information
Ending: 03/08/2021 5pm
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Improving the framework for the Authority's information gathering
Ending: 24/08/2021 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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