Information on 9 August 2021 interim prices without scarcity pricing applied

The Electricity Authority (the Authority) has received an information request from Nova Energy Limited for the interim prices (without scarcity pricing applied) for the six trading periods (37 to 42) on 9 August 2021 (“Relevant Information”).

These six periods were the subject of an undesirable trading situation (UTS) claim, and the Authority’s decision on the UTS is now under appeal, along with decisions relating to a pricing error claim arising on the same date.

The Relevant Information can be found here(external link).

The Relevant Information has been extracted from the case files available on the Authority’s EMI website. The six 9 August 2021 SPD case files are published in the 2021 folder here(external link).

The Electricity Authority is committed to transparency. This information will provide participants with the opportunity to prepare for the potential outcomes of the High Court hearing currently scheduled for 27-28 February 2023.

Final decision on 9 August 2021 undesirable trading situation claim

The Electricity Authority (Authority) has made its final decision on the claim of an undesirable trading situation (UTS) in relation to six trading periods (37 to 42) on 9 August 2021.

The Authority found there was no UTS. The Authority's decision document, previous consultation documents and submissions are available below.

 You can read the media release here.

Preliminary decision on claim of an undesirable trading situation on 9 August 2021 – Supplementary consultation 

The Authority published a preliminary decision paper (PDP) on the undesirable trading situation (UTS) alleged to have arisen as a result of the peak demand event on 9 August 2021.

The Authority’s review of the circumstances alleged to be a UTS is ongoing, and a final decision has not yet been made.

As a result of further information obtained in the compliance investigation into alleged breaches by the system operator relating to 9 August, and following consideration of stakeholder submissions on the PDP, the Authority published a supplementary consultation paper seeking further feedback on whether it is appropriate for scarcity pricing to apply to trading periods 39 – 42 on 9 August 2021. Notwithstanding that the ISS notice may not have been issued in accordance with the Code.

Submissions closed on 3 May 2022. Nine submissions were received and are listed below.

2021 UTS – Supplementary consultation submissions

Preliminary decision

The Authority completed its initial investigation of the 9 August 2021 claim of an undesirable trading situation (UTS) made by Haast Energy Trading Limited and Electric Kiwi Limited (Electric Kiwi), and later joined by Flick Energy Limited (Flick Electric) and Switch Utilities Ltd (Vocus New Zealand).

The Authority welcomed feedback from all interested parties on the preliminary findings and eight submissions were received.

You can read the preliminary decision paper, claim and submissions below.

Media release: Authority releases preliminary decision on 9 August undesirable trading situation claim  

The claim

Haast Energy Trading and Electric Kiwi have claimed that a UTS occurred on 9 August 2021. Two more parties have since joined the claim - Flick Energy (Flick Electric) and Switch Utilities (Vocus). The Authority has investigated the claim.

The claim and letter are published below.

19 October update - The Authority is considering the system operator’s role in the context of the alleged UTS, including its decision to issue a grid emergency notice at 6.47pm on 9 August 2021.

3 September update - On 3 September 2021 the Authority directed that prices for the six trading periods 37 to 42, on 9 August 2021, remain as interim until further notice. This is to allow the Authority time to investigate the claim of a UTS in respect of these trading periods. Also, as the total financial cost of the scarcity pricing situation for these trading periods is material, participants can be sure the invoiced amounts, when they are invoiced, are correct and final.

The claim

UTS - Submissions