Consultation

Note: Due to the 14 November earthquake, the Authority is aware that some interested parties were not able to return to their offices for several days. Therefore, the Authority has extended the deadline for accepting submissions on this paper and the Review of the customer compensation scheme until 5 pm on Tuesday, 6 December 2016.

We have published consultation papers on our reviews of two security of supply mechanisms: the customer compensation scheme (CCS) and stress test regime. The Authority decided to review these mechanisms to ensure they continue to promote the reliability and efficiency limbs of the Authority’s statutory objective in the face of changing market conditions.

We have concluded the stress test regime remains fit for purpose. We considered thirteen options for enhancing the stress test regime and propose pursuing two:

• Option 2: Improving quarterly stress test report content and format.
• Option 10: Simplifying reporting for disclosing participants not exposed to spot prices.

Option 2 is a relatively minor operational change that does not require any Code amendment. Option 10 would reduce compliance costs for disclosing participants not exposed to spot prices, such as those with a fixed price variable volume contract.

We have also released a companion information paper that gives an overview of New Zealand’s security of supply framework. The framework includes the CCS and the stress test regime. The companion information paper:

1. describes the mechanisms within the security of supply framework, and the way they work together to promote reliable and efficient supply
2. reminds participants that they are responsible for security of supply
3. assists stakeholders to make submissions on the consultation papers.