Consultations

The consultation is in response to an apparent increase in recent years of the frequency of trading periods where available supply is tight (or insufficient) compared to projected electricity demand and normal reserve requirements.

The Authority will be ensuring any possible intervention is in the long-term interests of consumers and the cost of any measure does not exceed the benefits that accrue to consumers.

The consultation paper Driving efficient solutions to promote consumer interests through winter 2023 seeks feedback on:

• the problem definition;
• the consumer-centric criteria it will use to assess options;
• 11 possible options; and
• the evidence to hand and the likely costs to consumers of any interventions.

The 11 possible options are:

• Provide better information on level of headroom in forecast supply stacks
• Provide forecast spot prices under demand sensitivity cases
• Improve wind generation forecasts
• System operator reviews wind generation forecasts
• Clarify availability and use of ‘discretionary demand’ control (such as ripple control)
• Introduce new integrated ancillary service to offset increased uncertainty in net demand
• Increase an existing ancillary service at times to offset increased uncertainty in net demand
• Require retailers to compensate their consumers for any forced curtailment caused by insufficient generation
• Update administered prices that apply in an energy or reserve shortage to ensure they reflect resulting impacts on consumers
• Introduce hours-ahead market
• Procure additional resource outside of spot market