Hedge market development
The hedge market is a key part of the wider wholesale market, and supports each limb of the Authority’s statutory objective (competition, reliability, and efficiency) for the long-term benefit of consumers. Hedge markets provide transparent and robust forward price signals, and enable participants to manage their exposure to the spot market for electricity.
Overview
| Date | Activity |
|---|---|
| 13 Dec 2022 | Correspondence: The Authority has written an open letter to participants outlining the findings of its recent information gathering exercise and its intended next steps. Read more |
| 31 Oct 2022 | Correspondence: The Authority has written an open letter to market participants requesting them to voluntarily provide off-market hedge information to assist with its understanding of claims some have been unable to manage their wholesale electricity price risk. Read more |
| 18 Oct 2022 | Correspondence: The Authority has written an open letter to market participants signalling its intention to request information on off-market transactions for bilateral electricity hedge contracts Read more |
| 26 Jul 2022 | Development: The Authority has released a decision paper that sets out the amendments to the Electricity Industry Participation Code 2010 (the Code) and the selection of Bold Market Making NZ Limited as the outcome of the procurement process for a commercial provider. Read more |
| 24 May – 04 Jul 2022 | Consultation: The Authority has released an issues paper that sets out initial observations from the review of the current Financial Transmission Rights (FTR) and Loss and Constraint Excess (LCE) allocation policy settings. Read more |
| 15 Feb – 29 Mar 2022 | Consultation: The Authority decided to pursue an enduring market-making approach in 2020 and continues to implement the first iteration of this decision throughout 2022. Read more |
| 10 Nov 2021 | Development: The Authority consulted with levy payers in June 2021 about changes to the Electricity Industry Levy to support the implementation of the commercial market-making scheme. Read more |
| 25 May – 22 Jun 2021 | Consultation: The Authority is consulting on changes to the Electricity Industry Levy to support the implementation of a commercial market-making scheme. Read more |
| 30 Mar 2021 | Development: The Authority has decided to amend the Electricity Industry Participation Code 2010 to include provisions for a permanent mandatory market making backstop. Read more |
| 22 Feb 2021 | Correspondence: The Authority has written to Genesis regarding their market making performance Read more |
| 24 Nov 2020 – 18 Jan 2021 | Consultation: We are consulting on our proposal to amend the Code to insert a permanent mandatory market making backstop. Read more |
| 27 Oct 2020 | Development: The Authority is pursuing an enduring market making approach that secures the benefits of the current arrangements while enhancing efficiency, improving trust and confidence in the market, and facilitating a service-oriented approach. Read more |
| 22 Sep 2020 | Development: From 29 October 2020, a Code change takes effect requiring industry participants trading electricity contracts on the ASX, or any other exchange, to give permission for their de-anonymised trading data to be shared by the exchange with the Authority Read more |
| 26 Aug 2020 | Development: Decision summary on enduring market making approach Read more |
| 2 Jul 2020 | Correspondence: Correspondence relating to letter from Ecotricity Read more |
| 2 Jul 2020 | Correspondence: Letter regarding Mercury’s market making performance. Read more |
| 24 Jun 2020 | Development: The sector forum has prepared and presented an incentive-based proposal to the Authority’s Board Read more |
| 23 Jun – 21 Jul 2020 | Consultation: We are consulting on our proposal to secure access to industry participants’ hedging data and invite feedback from stakeholders on our planned approach. Read more |
| 26 May 2020 | Development: The Authority issued guidance to ASX and market makers regarding flexibility for market makers under COVID-19 alert levels 3 and 4. Read more |
| 21 Apr – 16 Jun 2020 | Consultation: Ensuring market making arrangements are fit-for-purpose over time. Read more |
| 14 Apr 2020 | Correspondence: The Authority has written to the market makers to clarify the usage for the additional two exemptions during New Zealand’s Covid-19 Alert Level 4. Read more |
| 24 Mar 2020 | Correspondence: The Authority has offered to support the establishment of a forum for developing an industry view on a suitable incentive-based market-making scheme. Read more |
| 30 Jan 2020 | Correspondence: The Authority has notified the market makers affected by the urgent Code amendment. Read more |
| 30 Jan 2020 | Development: The Authority has made an urgent Code amendment to insert a dormant mandatory market making scheme into the Code. The amendment will come into force on 3 February 2020. Read more |
| 3 Dec 2019 | Correspondence: In November 2019 the Authority met with the non-integrated retailers to discuss the recent performance of the wholesale market. Read more |
| 29 Nov 2019 | Correspondence: In November 2019 the Authority met separately with each of the four largest generator-retailers to discuss the recent performance of the wholesale market and to seek improvements to market making services. The follow up letters to each organisation are pr Read more |
| 12 Nov – 02 Dec 2019 | Consultation: Ensuring market making arrangements are fit-for-purpose over time Read more |
| 12 Nov 2019 | Correspondence: In May 2019 the Authority responded to a request for the criteria it would apply when considering whether to urgently intervene to ensure market making services are provided. Read more |
| 26 Jun 2018 | Development: Decision paper on treatment of prudential offsets in the wholesale market Read more |
| 24 Apr 2018 | Development: Decision and Summary of Submission papers on Financial Transmission Rights (FTR) development Read more |
| 22 Aug – 31 Oct 2017 | Consultation: Issues and options paper on treatment of prudential offsets in the wholesale market Read more |
| Jul 2017 | Development: Hedge market survey 2017 Read more |
| 28 Mar – 09 May 2017 | Consultation: Financial transmission rights development: Issues and options paper Read more |
| 11 Oct 2016 | Correspondence: Mercury NZ Ltd request for a Central North Island FTR hub Read more |
| Dec 2015 | Development: Enhancing trading of hedge products decisions paper published Read more |
| 4 Aug 2015 | Development: Wholesale Advisory Group's recommendation paper published Read more |
| 30 Jun 2015 | Development: Information paper - Potential for ASX futures to offset spot market prudential security requirements Read more |
| 09 Jun – 21 Jul 2015 | Consultation: Enhancing trading of hedge products Read more |
| 10 Dec 2014 | Development: The Wholesale Advisory Group (WAG) held a public briefing on its Hedge Market Development discussion paper, released on 11 November 2014. Read more |
| 11 Nov – 19 Dec 2014 | Consultation: Wholesale Advisory Group discussion paper - Hedge Market Development Read more |
| Jul 2014 | Development: Hedge market survey 2014 Read more |
| 9 Jun 2014 | Development: Market marking for new ASX products Read more |
| 1 May 2014 | Advisory Group: Wholesale Advisory Group meeting Read more |
| 9 Apr 2014 | Advisory Group: Wholesale Advisory Group meeting Read more |
| 20 Feb 2014 | Advisory Group: Wholesale Advisory Group meeting Read more |
| Oct – Nov 2013 | Correspondence: Correspondence with Pulse Utilities on forward market liquidity Read more |
| 21 May 2013 | Development: Information paper: Hedge market performance and project update Read more |
| 26 Nov 2012 | Correspondence: Correspondence with ASX Read more |
| 26 Nov 2012 | Development: Information paper: Hedge market performance and project update Read more |
| Oct 2012 | Development: Managing electricity price risk guide Read more |
| Sep 2012 | Development: ASX report on new product development Read more |
| 26 Jun 2012 | Development: Information paper: Hedge market performance and project update Read more |
| May 2012 | Correspondence: Feedback from Contact on Information paper Read more |
| 17 Apr 2012 | Development: Information paper: Hedge market performance and project update Read more |
| Apr 2012 | Development: Hedge market survey 2012 Read more |
| 18 Jan 2012 | Development: Regular reports published Read more |
| Jan 2012 | Correspondence: Feedback on Market-Making CBA Read more |
| 21 Nov 2011 | Development: Information paper: CBA Market-Making Obligations Read more |
| 21 Oct 2011 | Development: The Authority has prepared a brief overview paper that outlines the initiatives the Authority has taken to provide for a more active hedge market. Read more |
| 20 Oct 2011 | Development: Information paper Read more |
| 11 Oct 2011 | Development: Situation Update Read more |
| Sep 2011 | Correspondence: Correspondence relating to consultation on hedge market arrangements Read more |
| 01 – 29 Aug 2011 | Consultation: Consultation on improving the opportunities to hedge New Zealand electricity prices Read more |
| 24 Jun 2011 | Correspondence: Correspondence with large generators and ASX Read more |
| May 2011 | Development: Independent Hedge Market Evaluation Report Read more |
| 26 Aug – 25 Oct 2006 | Consultation: Hedge market consultation 2006 Read more |
| Jan 2005 – Oct 2010 | Background: Background and work done by the Commission Read more |
