Electricity Authority - Market Brief

Code amendment regarding time frames for wholesale market invoicing

The Authority intends making a Code amendment under the urgency provisions of the Electricity Industry Act 2010.

This will amend clauses 14.36 and 14.73 of the Electricity Industry Participation Code 2010 so that monthly invoicing can be delayed if not all information is available, and to enable the FTR manager to provide information about the loss and constraint excess to be paid into the FTR account when final prices are delayed.

Because the amendment is being made under urgency, it will only be in force for nine months. The Authority intends to consult on a replacement amendment within that time.
• The urgent amendment is published for one week on the Proposed Code amendments webpage
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Wholesale Advisory Group discussion paper: aligning forecast and final prices

The Wholesale Advisory Group seeks feedback from interested parties on a discussion paper entitled: ‘Aligning forecast and final prices’. At the request of the Electricity Authority, the Wholesale Advisory Group is reviewing the feasibility, benefits and costs of measures to improve the alignment between forecast and final prices as a way of promoting greater competition. The Wholesale Advisory Group recognises that there are a number of consultations with submissions due on or around 23 August, but considers it is important to progress this project and requires submissions by 23 August to fit in with future meetings.
• Aligning forecast and final prices discussion paper
Submissions should be received by 5pm on 23 August 2013. The Wholesale Advisory Group will consider submissions from interested parties before providing advice and recommendations to the Authority.
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Retail Advisory Group issues paper: improving transparency of consumers’ electricity charges

The Retail Advisory Group is undertaking a review of whether there should be more transparency around consumers’ electricity charges. The purpose of the review is to identify and recommend alternatives that promote competition by ensuring consumers have timely access to sufficient information so they can understand their bills, see what is driving price changes and make choices about their retailer.

The Retail Advisory Group is seeking feedback on issues relating to the transparency of consumers’ electricity charges, so it can clearly identify any problems to be addressed. The Retail Advisory Group recognises that there are a number of consultations with submissions due on or around 20 August, but considers it is important to progress this project and requires submissions by this date to fit in with future meetings.
• Improving transparency of consumers' electricity charges
Submissions should be received by 5pm on Tuesday, 20 August 2013.
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Consultation paper on amendments to the procurement plan

The Authority has published a consultation paper ‘Amendments to the procurement plan’. The majority of the changes proposed by the system operator relate to the multiple frequency keeping provisions in the existing procurement plan.
• Amendments to the procurement plan
Parties are requested to make a submission by emailing submissions@ea.govt.nz with ‘Consultation Paper - amendments to the procurement plan’ in the subject line no later than 5pm on Friday 23 August 2013.
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Summary of submissions on proposed Part 10 Code amendments

The summary of submissions for the consultation 'Proposed transitional and minor Code amendments to Parts 10, 11 and 15' for questions 6 to 17, has been published.
• Summary of submissions - Proposed Transitional and minor Code amendments to Parts 10,11 and 15
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Annual levy rates for the year ending 30 June 2014

The Electricity Authority has calculated annual levy rates for the financial year ending 30 June 2014 in accordance with regulation 7 of the Electricity Industry (Levy of Industry Participants) Regulations 2010.

The levy rates are available on the Authority website and will be gazetted on Thursday 11 July 2013.
• Levy rates
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Fifth stress test results

Reports on the stress test results for the July-September 2013 quarter have been published.

The stress testing regime (referred to in the Code as Spot Price Risk Disclosure) requires certain participants in the wholesale electricity market to apply a set of standard stress tests to their market position, and report the results to their board and to an independent registrar appointed by the Authority.
• Figures supplied by the registrar and a commentary on the results by the Authority
Questions about the reports or the stress tests can be directed to info@ea.govt.nz. Please include 'stress test' in the subject line.
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Current consultations

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 and was introduced to promote efficient levels of reliability.
• Consultation on temporary changes to the configuration of the grid
Started: 11/6/2013; Ending 23/7/2013, 5pm.
Within-island basis risk (WIBR)

The Authority is seeking feedback on a consultation paper ‘Within-island basis risk: proposed approach’ which proposes a multi-point FTR as the preferred approach to assist participants to manage their within-island basis risk. The proposal is based on feedback received from the Locational Price Risk Technical Group and is a key initiative for further enhancing competition in the retail electricity market.
• Within-island basis risk
Started 25/6/2013; Ending 6/8/2013 5pm
Settlement and Prudential Security Review

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. The proposals in this paper are important for enhancing competition in the retail electricity market.
• Settlement and prudential security review: consultation paper
Started: 18/06/2013; Ending: 20/08/2013, 5pm.
Arrangements to manage a retailer default situation

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.
• Arrangements to manage a retailer default situation
Started: 18/06/2013, Ending: 20/08/2013 5pm
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NZ electricity hedge contracts - 5 July 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.

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TEL + 64 4 460 8860 FAX + 64 4 460 8879 WEB www.ea.govt.nz

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