-
Proposal to alter the way availability costs are allocated
Closed
08 Mar – 26 Apr 2016
9 submissions received (view submissions)
Instantaneous reserve (IR) is currently procured in each island and the costs are allocated on the same basis. Later this year, we are planning to make software changes so the system operator would procure IR nationally. We propose to amend the Electricity Industry Participation Code 2010 (Code) so the costs are also allocated on a national basis. We are concerned about the undesirable consequences of procuring IR nationally that might develop if we continue to allocate the costs separately in each island.
Such a mismatch would likely lead to costs being allocated to parties that have not caused those costs. It could lead these parties to make inefficient investment or retirement decisions, and could create perverse incentives when they make reserve offers. Inefficient investment or retirement decisions are not in the long-term interest of consumers because they cause spot prices and power bills to be higher.
Consultation Papers
-
Proposal to alter the way availability costs are allocated
Consultation-paper-Proposal-to-alter-the-way-availability-costs-are-allocated.pdf (PDF, 339 KB)
Last updated: 08 March 2016
Summary of submissions
-
Decision - Altering the way instantaneous reserve availability costs are allocated
Decision-instantaneous-reserve-costs-allocated.pdf (PDF, 194 KB)
Last updated: 09 August 2016
-
Summary of submissions
Summary-of-submissions-national-market-for-IR.pdf (PDF, 232 KB)
Last updated: 09 August 2016
Submissions
-
Download a ZIP file containing all documents
-
Contact Energy
Contact-Energy.pdf (PDF, 27 KB)
Last updated: 10 May 2016
-
EnerNOC
Last updated: 10 May 2016
-
Genesis Energy
Genesis-Energy.pdf (PDF, 54 KB)
Last updated: 10 May 2016
-
Major Electricity Users' Group
Last updated: 10 May 2016
-
Meridian Energy
Meridian-Energy.PDF (PDF, 204 KB)
Last updated: 10 May 2016
-
Mighty River Power
Mighty-River-Power.pdf (PDF, 276 KB)
Last updated: 10 May 2016
-
Nova Energy
Last updated: 10 May 2016
-
Powerco
Last updated: 10 May 2016
-
Transpower
Transpower-NZ.pdf (PDF, 327 KB)
Last updated: 10 May 2016
-
Contact Us
EMAIL: info@ea.govt.nz
Sign up to our newsletter
© 2023 Copyright material on this site is protected by copyright owned by the Electricity Authority or its licensors. Full copyright statement.