Risk and risk management
This programme covers initiatives to promote efficient management of capacity and energy risks.
Current projects
-
Winter 2023
Driving efficient solutions to promote consumer interests through winter 2023
Latest Activity: 9 Mar 2023 Winter 2023
-
Hedge market development
The hedge market development project monitors and supports industry progress on improving hedge market activity.
Latest Activity: 13 Dec 2022 Update on off-market hedge information request findings and next steps
-
Determinations of who caused under-frequency events
Determinations of who caused under-frequency events
Latest Activity: 08 Nov – 06 Dec 2022 Consultation on the draft determination of causer for the under-frequency events of 1 March 2022 and 5 May 2022
-
Future security and resilience project
The future security and resilience project will look at how to ensure that the electricity system remains secure and resilient in the coming decades.
Latest Activity: 13 – 13 Apr 2022 Events
-
Extended Reserve
This project is about how electricity distributors and direct connect consumers provide extended reserve using automatic under-frequency load shedding (AUFLS).
Latest Activity: 16 Nov 2021 Approval of the system operator's AUFLS Technical Requirements (ATR) and gazette of the Extended reserve Code amendment
-
Internal transfer pricing and profitability
This project was prompted by concerns about competition in the generation and wholesale electricity market and public confidence in the sector.
Latest Activity: 26 Oct 2021 Internal transfer pricing and segmented profitability reporting - Code amendment
-
Wholesale Market Information Disclosure
This project reviews the disclosure of information in the electricity market.
Latest Activity: 26 Oct 2021 Permanent change to definition of disclosure information
-
Efficient procurement of extended reserve
We are considering options to improve the way in which extended reserves are procured.
Latest Activity: 17 Apr 2018 Extended reserve project update
-
Winter energy and capacity margins review 2017/2018
Latest Activity: 27 May 2017 Development on winter energy
-
Normal frequency management - Strategic review
The Authority is reviewing the arrangements for managing normal frequency. Matters to be considered include the asset owner performance obligations for generators, the proposed national market for frequency keeping, cost allocation and dispatch processes
Latest Activity: 28 Mar – 09 May 2017 Information paper: Normal Frequency Management - Strategic Review
-
Review of Stress Test regime
We reviewed the stress test regime, called the Spot Price Risk Disclosure requirements, which are contained in Part 13 of the Code. We want to assess whether the regime continues to provide appropriate signals and incentives to retailers and consumers
Latest Activity: 1 Mar 2016 Background of stress test review
-
Review of the customer compensation scheme (CCS)
We reviewed the customer compensation scheme (CCS) set out in Part 9 of the Code to assess whether it continues to provide appropriate signals and incentives to retailers and consumers under evolving market conditions.
Latest Activity: 1 Mar 2016 Background on CCS
-
National market for frequency keeping
This project has arisen, in conjunction with the Multiple Frequency Keepers (MFK) Project because the cost of frequency keeping services has increased significantly in recent years.
Latest Activity: 13 Aug 2013 Project brief
-
National market for instantaneous reserve
We are progressing a project to enable instantaneous reserve to be procured in a national market.
Latest Activity: 1 Mar 2013 Background on instantaneous reserve
-
Review of instantaneous reserve (IR) markets
This project reviews the fast instantaneous reserve and sustained instantaneous reserve (FIR and SIR) market arrangements and products to determine whether there are alternative reserve products and procurement methods that could be brought to the market
Latest Activity: 10 May 2012 Under-frequency management project
-
Normal Frequency-Generator Asset Owner Performance Obligations
A review has been undertaken of the obligations of generation assets to support frequency under normal conditions.
Latest Activity: 17 Jun – 30 Jul 2010 Normal Frequency - Generator Asset Owner Performance Obligations
Completed projects
| Review of regulatory settings for Official Conservation Campaigns (OCCs) | Outcome: | Completed: |
| The Authority reviewed aspects of the settings for OCCs including the OCC start and stop triggers, whether to retain both National and Sub-national (currently South Island) OCCs, and whether any modification to the Reserve Supply Determination was required. Simultaneously the system operator reviewed the security of supply forecasting and information policy (SOSFIP). |
The enabling Code amendment came into force on 1 August 2019. The Authority’s key decisions were to retain the 10% and 8% trigger points (respectively) for starting and stopping OCCs and to count contingent hydro storage in relation to OCCs. |
02 Jun 2020 |
| Fault ride through project | Outcome: | Completed: |
| The Authority decided to amend the Code to include fault ride through standards for generating units. | The enabling Code amendment came into force on 24 November 2016. | 24 Nov 2016 |
| Managing Retailer Default Situations | Outcome: | Completed: |
| The Authority has made arrangements to facilitate the orderly resolution of a default situation when an electricity retailer becomes insolvent or otherwise exits the market and is unable to supply its customers. Ongoing failure by a retailer to pay for electricity or distribution services can lead to increasing financial losses by generators and distributors and could lead to customers becoming stranded without a retailer. |
To manage this possible situation regulated arrangements for managing a retailer default became operational in July 2014. | 15 Jul 2015 |
