Market participants rely on prices from the forecast market schedules to plan production and make consumption decisions. Under normal conditions, the forecast price can be relatively insensitive to small changes in forecast demand. However, at times of system stress these price forecasts can vary significantly with only small changes in forecast demand. Information is published via WITS to allow participants to estimate this price sensitivity themselves, though some market expertise and software investment is required to present the data in a meaningful way.

Transpower, in its role as system operator, is seeking feedback on a Proof of Concept of a sensitivity schedule that will allow all participants to easily visualize the sensitivity of forecast price to small changes in demand. The sensitivity schedules will also include an estimate of the impact of the change in demand on the CO2e (CO2 equivalent) emissions levels of the scheduled generators. The proof of concept will run for 3 months.

The proof of concept is published on the system operator section of the Transpower website.