Consultations

Note:  Unfortunately, Appendix A of the consultation paper, that provided the proposed drafting of the Code amendments, was not attached to the consultation paper. Appendix A, has now been published below. As a result of this publication error, the Authority has extended the deadline for submissions on the consultation paper to Friday 10 October 2014.

In November 2013, the Authority amended the Code to include new retail default provisions. The new provisions allow the Authority to manage a situation in which a retailer does not meet its financial obligations or becomes insolvent. The Authority is now seeking feedback on proposed minor amendments to the Code to ensure that Authority is able to manage all retailer defaults.

In the event of a retailer default, the Authority may assign the customers of the defaulting retailer to other retailers. The proposed minor Code amendments will enable traders to provide information to the Authority about ICPs at which they cannot trade. It will also ensure that traders that are assigned new customers as the result of another retailer defaulting are able to contact those customers.

The Authority is seeking feedback on a proposal to amend the Electricity Industry Participation Code 2010 to establish arrangements for managing a situation where an electricity retailer does not meet its financial obligations or becomes insolvent (a retailer default situation). The Authority is also proposing to introduce guidelines describing the detailed processes and actions that would be taken if there is a retailer default situation.

The Authority suggests that submitters read this paper in conjunction with the consultation paper on settlement and prudential security arrangements, which has been released at the same time.

The Authority's Retail Advisory Group (RAG) has published a second discussion paper on arrangements for managing retailer default situations. The discussion paper sets out the preferred approach that has been developed by the RAG and explains the rationale and implications of the steps in the preferred approach.

The RAG seeks feedback on the proposal in general, and on the specific questions asked in the discussion paper.

This discussion paper seeks feedback on:

1. the potential risks and consequences of a retailer not paying for electricity or electricity services (a retailer default situation); and
2. three options for limiting any adverse effects on consumers and electricity industry participants of a retailer default situation.