Review of Part 6 - Distributed generation pricing principles

Requests for extension 

We have received requests from the Independent Electricity Generators’ Association and Trustpower to extend the consultation period for the DGPPs consultation paper. We have declined their requests because we consider that ten weeks is enough time for interested parties to understand our proposals and prepare high-quality submissions. 

 

Correspondence with Inchbonnie Hydro 

The Authority received a letter from Inchbonnie Hydro relating to the effects of its DGPPs proposal. The Authority has sent a letter to Inchbonnie Hydro in response.

Correspondence with Nova

Email from Nova Energy, Friday 27 May 2016.

Hi John

Reiterating my comment at the IEGA meeting yesterday; the proposed effective date of 1 April 2017 for removal of Part 6 of the Code back-up for distributed generation in the lower North Island (LNI) and LSI has an impact on generation decisions being made this winter; given that ACOT payments are based on the transmission costs saved in the prior pricing year.

That could variously result in generators incurring costs by scheduling generation to meet RCPD peaks for no reward, or alternatively not generating to meet peaks and forgoing potential revenues. It is also too early to determine precisely what impact the potential lack of generation by DG during the peak demand periods this winter might have on security of supply in all locations and circumstances.

Nova Energy’s generation exports at its Edgecumbe co-gen plant during the dairy factory shut-down is discretionary, and is directly affected by this uncertainty.

Given the process of consultation, analysis and decision making cannot be completed prior to the expected incidence of RCPD for this year, I am asking the Electricity Authority to undertake that any removal of Part 6 protection for DG will not take affect before 1 April 2018 (if at all).

Regards

Paul Baker

Commercial and Regulatory Adviser 

Authority response, Monday 30 May 2016

Hi Paul,

Thank you for your email. This point was raised by you at the IEGA meeting last week. You could raise it in your submission on the Review of Distributed Generation Pricing Principles (DGPP).

We cannot give the undertaking you request.  We will make decisions after considering submissions on the DGPP.

As per our standard practice we intend to publish your email with our response on our website.

Kind regards  

John Rampton

General Manager Market Design