Undesirable trading situation claim
Haast Energy Trading and Electric Kiwi have claimed that an undesirable trading situation (UTS) occurred on Monday, 9 August 2021. Two more parties have since joined the claim – Flick Electric and Switch Utilities (Vocus).
The Authority’s Board has decided to open an investigation in response to the claim. The claim and letter have been published on our website.
Along with the claim, the Authority also received an alleged breach of the Electricity Industry Participation Code 2010 (Code) under the high standard of trading conduct. The first step in the Authority's compliance process is for the parties allegedly in breach to provide information to the compliance team for consideration under the Enforcement Regulations. This step is already under way.
Electricity Authority review of 9 August 2021 event
As announced last week, the Authority has ordered a review under section 16(1)(g) of the Electricity Industry Act 2010 of the 9 August 2021 electricity cuts.
The terms of reference for the review are on our website. The review has two phases:
- Phase one of the review will seek immediate assurance that any systemic and process issues that led to the Monday 9 August power cuts are urgently corrected. In particular, the review will be around the system operator’s demand allocation tool and communications. This part of the review will be completed in two weeks.
- Phase two of the review will be wider than the system operator’s role. The scope will be informed by the findings of phase one of the review.
Ministerial review - investigation into electricity supply interruptions of 9 August 2021
The Minister of Energy and Resources has directed MBIE to investigate and report on the causes and factors contributing to the power supply interruptions of 9 August. More information about the scope of this review and process is on MBIE’s website. The Authority will coordinate with MBIE to contribute to the investigation. The investigation is intended to take between 6 and 10 weeks.
Transpower's internal assurance process
Transpower is conducting a review of the 9 August event and will report to the Authority. The Authority is communicating with both MBIE and Transpower to minimise duplication of effort in relation to these reviews and impact on the industry as we all contend with the additional challenges of operating under lockdown.
Pricing error claim
NZX received a pricing error claim in response to the 9 August 2021 event. This is currently under consideration by the Authority.
Wholesale competition review
The Authority is continuing to work on the wholesale competition review. This review is looking at competition in the wholesale market for the period 2018 to early 2021, including analysis of spot and forward prices. More information about this review is on our website.
Please take care of yourselves and contact us if you have any questions: communications@ea.govt.nz
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