Report on completion of section 42 matters

Report on completion of section 42 matters

The Authority has published a report on completion of initiatives that section 42 of the Electricity Industry Act 2010 (Act) required the Authority to address in its first year of operation.

These initiatives are focused on developments to strengthen competition, improve investment and supply signals, and monitor industry and market performance, in line with priority areas identified in the Ministerial Review of Electricity Market Performance 2009.

The seven matters in section 42 have been addressed as follows:

• A customer compensation scheme for section 42(2)(a);

• Scarcity pricing and a stress testing regime for section (42)(2)(b);

• A financial transmission rights market for section 42(2)(c);

• Dispatchable demand and demand-side bidding and forecasting for section 42(2)(d);

• A suite of standardisation initiatives for sections 42(2)(e) and (f); and

• New market-making agreements for section 42(2)(g).

• As the Authority adopted alternative approaches to address some matters, section 42(1)(b) required the Authority to provide a report to the Minister of Energy and Resources before 1 November explaining why it did so and when and how the alternative approaches will address those matters.

The ‘Report on Completion of Section 42 New Matters in the Electricity Industry Act 2010’ and the Minister’s media statement are available at:

https://www.ea.govt.nz/our-work/programmes/priority-projects/

ENDS

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