Market Brief - Electricity Authority 18 June

Market Brief

18 June 2013

Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.

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Decision to amend wholesale market information disclosure obligations

The Authority has reviewed the wholesale market information disclosure obligations set out in clause 13.2 of the Electricity Industry Participation Code 2010 (the Code) in response to a recommendation from the Wholesale Advisory Group (WAG).  After consulting on proposed Code amendments (November 2012) and on draft guidelines (April 2013), and having considered the submissions received, the Authority has now finalised the Code amendment and the guidelines.

The Code amendment will take effect from 1 October 2013. The Authority has adopted this delayed commencement date to allow participants time to adjust their systems and practices in order to comply with the amended obligations.

The Authority considers that the Code amendment, supported by the guidelines, provides greater clarity regarding participants’ obligations to disclose wholesale market information which may be expected to affect market prices. The Code amendment will be available later this week. 

Further information:
overview of the Authority’s review of wholesale market information disclosure obligations
finalised guidelines to assist participants understand their wholesale market information disclosure obligations
submissions on draft guidelines

Decision to amend the undesirable trading situation provisions

The Authority Board has approved amendments to the undesirable trading situation (UTS) provisions in the Code and the release of a paper explaining its decision.
Review of UTS provisions

Decision to amend advisory group administrative arrangements

The Authority has published its final decision on the review of advisory group administrative arrangements.
Final decision
The Authority has made relatively minor amendments to the charter about advisory groups and the advisory group terms of reference to improve the effectiveness of the advisory groups.

The Authority has also published:
A summary of submissions on the review of advisory group administrative arrangements consultation paper (published on 5 March 2013)
A marked-up version of the charter about advisory groups
A marked-up version of the terms of reference for the Retail Advisory Group
A marked-up version of the terms of reference for the Wholesale Advisory Group

Exemption granted for ANZ NZ Limited

The Authority has granted ANZ Bank NZ Limited an exemption from clause 13.218 of the Code in respect of electricity risk management contracts it enters into with its Australian domiciled parent, Australia and New Zealand Banking Group Limited. 
Gazette notice and the reasons for the approval

Arrangements to manage a retailer default situation: consultation paper

The Authority is seeking feedback on a proposal to amend the Code to establish arrangements for managing a situation where an electricity retailer does not meet its financial obligations or becomes insolvent (a retailer default situation). The Authority is also proposing to introduce guidelines describing the detailed processes and actions that would be taken if there is a retailer default situation. The proposed Code amendments are based on the work of the Retail Advisory Group, and take into account feedback received through a workshop held on 23 April 2013.
Arrangements to manage a retailer default situation: consultation paper
Parties are requested to make a submission by 20 August 2013.  Parties are recommended to consider the proposals outlined in the settlement and prudential security consultation paper in preparing their submissions.

The Authority intends holding a forum on the retailer default situation proposals during the consultation period. Further details about the forum will be announced shortly. Parties who would like to attend this forum are requested to register their interest by emailing info@ea.govt.nz with ‘retailer default forum’ in the subject line.

Settlement and prudential security review: consultation paper

The Authority is seeking feedback on a proposal to amend the Code to improve the wholesale market settlement and prudential security system.  The proposed Code amendments are substantially based on the work of the Wholesale Advisory Group, and take into account feedback received from the Settlement and Prudential Security Technical Group.
Settlement and prudential security review: consultation paper
Parties are requested to make a submission by 20 August 2013. Parties are recommended to consider the proposals outlined in the arrangements to manage a retailer default situation consultation paper, in preparing their submissions.

The Authority intends holding a forum on the settlement and prudential security proposals during the consultation period. Further details about the forum will be announced shortly. Parties who would like to attend this forum are requested to register their interest by emailing info@ea.govt.nz with ‘settlement and prudential security forum' in the subject line.

Part 10 implementation – Industry teleconference on transition arrangements

A teleconference to confirm Part 10 transition arrangements will be held on 20 June 2013 from 2.00pm to 3.30pm.   Participants who are transitioning systems to the new Part 10 arrangements who have not advised the Authority their transition contacts and have not received a meeting request should contact saltanat.cole@ea.govt.nz
Papers for the meeting

Draft determination of causer of under-frequency event on 1 May 2013

The system operator has made a draft determination on the causer of the under-frequency event on 1 May 2013. The draft determination has been published on WITS and submissions on it should be forwarded to the system operator at market.services@transpower.co.nz by 5pm on Wednesday, 26 June 2013.

Retail Advisory Group papers

Minutes for the 15 May 2013 meeting of the Retail Advisory Group have been published.
Minutes

Current consultations

Removal of technology-specific references from frequency keeping provisions

The Authority is consulting on proposed amendments to Part 1 and Part 13 of the Electricity Industry Participation Code 2010 (the Code) to remove technology specific references from the Code.  This would have the practical effect of  enabling participation in the frequency keeping market by demand-side participants and other non-generators. Started: 14/5/2013. Ending: 5pm 21/6/2013.
Removal of technology-specific references from frequency keeping provisions
Consultation on changes to allocation of constrained-on and -off amounts to system operator

The Authority is proposing to remove the provision in the Code requiring the system operator to pay for constrained-on and constrained-off amounts.  The Code would instead require the clearing manager to identify and publish constrained-on and -off amounts associated with the system operator exercising discretion to depart from the dispatch schedule.  Started: 14/5/2013. Ending: 5pm 25/6/2013.
Consultation on changes to allocation of constrained-on and -off amounts to the system operator

Pricing in a pivotal supplier situation

The Wholesale Advisory Group (WAG) seeks feedback from interested parties on a discussion paper entitled:  ‘Pricing in pivotal supplier situations’.  Submissions may be emailed to wag@ea.govt.nz with 'Pricing in pivotal supplier situations' in the subject line. The WAG will consider submissions from interested parties before providing advice and recommendations to the Authority. Started 28/5/2013 – Ending: 5pm 9/7/2013.
Pricing in pivotal supplier situations discussion paper
Consultation on temporary changes to the configuration of the grid

The Authority is seeking feedback on a proposal to amend the Code to enable Transpower to make temporary changes to grid configuration in certain situations. The proposed Code amendment replaces a temporary Code amendment that expires in December 2013. Started: 11/6/2013; Ending: 5pm 23/7/2013.
Consultation on temporary changes to the configuration of the grid

NZ electricity hedge contracts - 14 June 2013

Information plays an important part in building market confidence and strength.

To assist interested parties in tracking market development, the Authority publishes NZ electricity hedge contracts as a standard section of its weekly Market Brief.

ENDS

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