Investigation of an alleged breach by Genesis Energy Limited
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Following fact-finding the Authority has opened an investigation into an alleged breach of the trading conduct provision in the Code by Genesis Energy Limited.
On 12 August 2021, Electric Kiwi Limited and Haast Energy Trading Limited jointly reported to the Authority that Genesis had breached clause 13.5A of the Code on 9 August 2021.
Genesis Energy Limited is alleged to have breached clause 13.5A(2)(a) by withholding generation capacity during trading periods 37 – 42 on 9 August 2021.
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 investigation by 5pm, 21 October 2021. The investigator can be contacted, citing the reference ‘Genesis – 9 August 2021 – Trading Conduct’ in the subject line, by emailing compliance@ea.govt.nz
You can find out more about the Authority’s process for dealing with alleged breaches of the Code here.
The same parties have also claimed a UTS in relation to trading period 37 – 42 on 9 August 2021. The UTS claim is being considered independently of this breach allegation.
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Setting the Authority’s compliance strategy
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The Authority is developing a compliance strategy to structure its compliance approach and focus its resources on the most serious and highest priority risks.
The strategy is intended to establish the guiding principles and objectives for the Authority, under which further policies and procedures will be developed for specific compliance activities, such as participant registration, participant auditing, education, monitoring, investigation and enforcement.
We encourage feedback on the draft strategy. The consultation period closes at 5pm on Wednesday 10 November.
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Closure of Trustpower investigation
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The Authority has discontinued the following investigation into an alleged breach of the Electricity Industry Participation Code 2010.
Trustpower was alleged to have breached clause 11.15AA of the Electricity Industry Participation Code 2010 when it contacted a customer that was in the process of switching multiple ICPs to a gaining retailer in an attempt to retain the customer during the switch protected period.
Investigation found that no breach occurred, and the Authority decided to discontinue the investigation. Notices of our decisions and reasons are available on our website.
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Distribution pricing reform online workshop – Monday 18 October
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Last month the Authority published a consultation paper Supporting reform to efficient distribution pricing, which attached an updated Distribution Pricing Practice Note, as a part of our focus to drive faster distribution pricing reform to realise consumer benefits and to facilitate an efficient transition to a low-emissions economy.
To assist stakeholders with submissions, we are hosting an online workshop from 1-4pm on Monday 18 October 2021.
The purpose of the workshop is to allow you to hear from Authority staff on the thinking that led to our approach in this updated Practice Note, and how we have considered some of the constraints the sector faces in reforming prices.
The workshop will help us gather the most valuable feedback from the sector. We are particularly interested in stakeholder views on three key areas:
Any discussion of pass-through of distribution prices will be reserved until the end of the workshop, and there will be an opportunity for stakeholders to excuse themselves at that time. Feel free to contact us in advance if there are other measures you require to ensure Commerce Act compliance.
With COVID alert level 3 restrictions still in place for many of you, this meeting will be held via Zoom. We will endeavour to make this as interactive as possible with opportunities throughout the workshop for discussion, questions and clarification of any points.
The workshop is not intended to decide anything, or to be a replacement for your written submissions, but rather to assist in ensuring that submissions are complete and of the highest value.
Please reply by email to distribution.pricing@ea.govt.nz to register your interest in attending (along with any others from your organisation that would find it useful).
An invitation with the Zoom link will be sent to each person.
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Review of consultation charter paused
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The Authority initiated a review of the Consultation Charter earlier this year. Due to competing priorities and upcoming consultations, the Authority has decided to pause the review until early 2022. This provides certainty to our stakeholders as we progress and engage on key projects including TPM, distribution and the review into competition in the wholesale market.
The Authority is committed to effective stakeholder engagement and has developed a stakeholder engagement strategy to support our existing Charter, as well as the sector ambitions in our strategy. You can read more about our engagement strategy here.
Please contact communications@ea.govt.nz if you have any questions.
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Correction: Market Brief 5 October 2021 - Future security and resilience project
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Apologies the title of last week’s item said the final report for the future security and resilience project will be released in mid-November. This should have said the first report for the future security and resilience project will be released in mid-November.
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Assisting distribution networks with faster pricing reform
Ending: 03/11/2021 5pm
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Setting the Authority's Compliance Strategy
Ending: 10/11/2021 5pm
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Proposed new Transmission Pricing Methodology
Ending: 02/12/2021 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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