Wholesale Market Information Disclosure

Effective information disclosure is important for a well-functioning market. It can eliminate information asymmetry, improve efficiency in a market, and enhance the confidence and integrity of the forward price curve. We see disclosure rules as needing to continually evolve to raise the disclosure bar over time.

We have commenced the next phase of the project which will review information disclosure needs and issues raised with thermal fuel related disclosure.

Context
Market conditions in Spring 2018 highlighted concerns about access to information to support a well-functioning market. Concerns about levels of information disclosure in the gas market (and related overlap to the electricity market) have since been echoed by the Minister for Energy and Resources, the Electricity Price Review, MBIE, market makers that do not operate in the gas market and independent retailers. The Gas Industry Company have been working on understanding the information gaps in the gas market, and we will be collaborating closely with them on this project.

What will the project include?
During calendar year 2020, the team expect to focus on identifying and closing any gaps related to expected availability of coal and gas plants, including reviewing the exclusions, with a view to improving the efficient functioning of the electricity market. We will also consider what other information disclosure gaps might exist. A consultation paper is planned for mid-2020, and if relevant, a decision paper is planned for December 2020.

Please contact WMID@ea.govt.nz at any point if you have questions for the project team.

On October 2013 the Electricity Industry Participation (Disclosure Obligations) Code Amendment 2013 came into force. The amendment updated and clarified the obligations of participants in relation to making information readily available to the public if the information is likely to affect prices in the wholesale electricity market. The amendment replaced clause 13.2 of the Code and replaced it with a new clause 13.2A.

This project builds on the previous work done and has two work streams; one work stream will consider whether each of the exclusions in clause 13.2A are still appropriate and efficient, the other work stream will review fuel information disclosure.