Consultation extended for wholesale electricity market competition review and issues paper
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In October the Authority published two papers for consultation as a part of its review into competition in the wholesale electricity market:
- Market Monitoring Review of structure, conduct and performance in the wholesale electricity market
- Inefficient price discrimination in the wholesale electricity market – Issues and options
The Authority has decided to extend the consultation period by one week. Extending the deadline will allow stakeholders more time to send in feedback while responding to other concurrent Authority consultations.
Consultation will now close at 5pm on Wednesday 15 December.
After assessing all stakeholder feedback, enduring policy options will be assessed and released for consultation early next year.
More information is available on the Authority’s website.
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Summary of submissions on the Updating the Regulatory Settings for Distribution Networks discussion paper
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The Authority has published the submissions it has received alongside a summary of those submissions on the discussion paper Updating the Regulatory Settings for Distributions Networks: Improving competition and supporting a low emissions economy.
The discussion paper presented an overview of potential issues affecting the sector and potential updates to the regulatory settings that could better support competition and an efficient transition to a low emissions economy.
Submissions closed in late September. The Authority received a total of 51 submissions from a wide range of stakeholders and we thank everyone for their feedback.
We will now undertake follow-up engagements with submitters where clarification and further information is required for a more complete understanding of the issues and possible remedies.
The Authority will publish a second consultation paper early next year that presents our view of the issues and a work programme to take these issues forward.
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Investigation of an alleged breach by Transpower New Zealand Limited as the system operator
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Following initial fact-finding, the Authority has opened an investigation into alleged breaches of the Code by Transpower New Zealand Limited as the system operator in relation to its management of the national supply emergency on 9 August 2021.
On 13 August 2021, the system operator provided an interim breach report to the Authority, stating it had potentially breached three clauses in the Code in relation to 9 August 2021, including clause 7.1A(1) of the Code (reasonable and prudent system operator). In the course of the fact finding stage the Authority has identified additional Code clauses the system operator may have breached.
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 investigator by 5pm, 23 November 2021. The investigator can be contacted, citing the reference ‘System operator investigation – 9 August 2021’ 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 Authority has also opened an investigation into Genesis’ conduct on 9 August 2021. That investigation is ongoing.
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Notice of decision to lay formal complaint with the Rulings Panel
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On 2 November 2021, the Authority decided, under regulation 23(3)(b) of the Electricity Industry (Enforcement) Regulations 2010, to lay a formal complaint with the Rulings Panel against Transpower New Zealand Limited as the grid owner.
The complaint relates to the grid owner not changing its calculation of demand information that it provided to the pricing manager after the status of Alinta ENZ Limited’s kiln co-generation plant changed to a Type B industrial co-generation station.
The alleged breach has been calculated to have caused a significant market impact with generators being overpaid by $31.6M and purchasers overpaying by $32.6M.
More information is available on the Authority’s website.
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Consultation on proposed changes to the system operator procurement plan
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The system operator has proposed a replacement procurement plan and we have published a consultation paper setting out those changes. The procurement plan sets out, for each ancillary service, the principles and process the system operator will apply and follow in assessing the quantity the system operator is required to purchase.
In addition to a number of proposed improvements to each of the ancillary services, the proposal incorporates changes to instantaneous reserve to enable battery energy storage systems to offer instantaneous reserve while discharging.
This change aligns the procurement plan with the Authority’s draft decision to amend the Code to enable a wider range of resources to be offered as ancillary services.
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Update of inverter standard to AS/NZS4777.2:2020
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On 18 December 2020, Standards New Zealand published a new inverter standard, AS/NZS 4777.2:2020. This new standard is already current but will replace AS/NZS 4777.2:2015 on 18 December 2021 when AS/NZS 4777.2:2015 will stop being current.
The Authority is proposing to amend the Part 1A process in Part 6 of the Code, replacing AS/NZS4777.2:2015 with AS/NZS4777.2:2020.
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Clarification on raw meter data output tests for category 1 and 2 metering installations where the least significant digit is not a numeral
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Last week we sent a memo to approved test houses (ATH) metering equipment providers (MEP) regarding raw meter data output tests for category 1 and 2 metering installations.
The memo is available on the Authority’s website.
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Future security and resilience: draft phase 1 report published next week
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Next Tuesday, the Electricity Authority will release the draft report Opportunities and challenges to the future security and resilience of the New Zealand power system.
The Authority is looking forward to engaging with industry to ensure all views and perspectives on the opportunities and challenges are heard. Feedback will be collected primarily through online industry workshops, in late November and early December. More information about how your organisation can be involved in the engagement process will be provided when the report is formally released next week.
You can keep up to date with the Future security and resilience project on the Authority’s website.
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IPAG meeting papers published
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The Authority has published the papers from the Innovation and Participation Advisory Group (IPAG) meeting held on 20 October 2021.
At the meeting, Electricity Authority staff provided an overview of the submissions received in response to the discussion paper “Updating the regulatory settings for distribution networks”. IPAG provided feedback on key themes highlighted in the submissions and advised the Authority on next steps.
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MDAG meeting papers published
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We have published the meeting packs from the Market Development Advisory Group (MDAG) meetings held on 9 September and 20 October 2021.
The meeting pack from 20 October includes presentations received from 12 stakeholders about the 100% renewables problem definition.
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Register now for the Energy Trader Forum on 17 November
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Join your peers for the last Energy Trader Forum of 2021, to be held Wednesday 17 November at Te Wharewaka o Pōneke, Wellington.
Rupert Holbrook – Customer Connections Project Director, Transpower is providing insights into the rapidly changing connection landscape, including considerations for traders.
Gary Holden – Managing Director, Lodestone Energy is speaking about grid-scale solar.
Greg Sise – Managing Director, Energy Link is continuing the conversation on 100% renewables.
Margaret Cooney – Chief Customer Officer, Octopus Energy is delivering a perspective on market entry and effective competition.
There will also be market updates from NZX, Energy Market Services, emsTradepoint, ASX, Electricity Authority and Energy Link.
The forum will run simultaneously as an in-person, socially distanced event, and also online. Now more than ever it is important to keep connected, to learn from and engage with forum members.
Register now
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Setting the Authority's Compliance Strategy
Ending: 23/11/2021 5pm
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2021/22 and 2022/23 levy-funded appropriations
Ending: 30/11/2021 5pm
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Proposed new Transmission Pricing Methodology
Ending: 2/12/2021 5pm
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Proposed changes to the system operator procurement plan
Ending: 7/12/2021 5pm
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Review of competition in the wholesale market from January 2019 until early 2021 and an issues paper on inefficient price discrimination
Ending:15/12/2021 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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