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Decisions & claims

This page contains information and documents relating to undesirable trading situation (UTS) decisions and claims.

UTS 8 - 12 March 2013

On 14 March 2013 the Authority received claims for the existence of an undesirable trading situation (UTS) from Norske Skog Tasman Limited and Mighty River Power Limited in respect of prices at the Kawerau nodes KAW0111, KAW0112 and KAW1101 from 8 March 2013. These claims were in regard to data and technical issues with the pricing process. Norske Skog Tasman revised their claim on 20 March 2013. Details of these claims are provided below. The UTS claims were withdrawn by Norske Skog and Mighty River Power Limited on 2 April 2013 and 3 April 2013 respectively. The Authority will be taking no further action in relation to these claims.

UTS 26 March 2011

In this section you will find:

Claims

The Authority received 35 claims that an Undesirable Trading Situation (UTS) existed on 26 March 2011. Details are provided below.

The Authority ordered the delay of final prices for 26 March while the UTS claim was being investigated.

The Electricity Authority's UTS Committee met on 31 March 2011 to receive an initial report on the claims by several parties that an undesirable trading situation had occurred on 26 March 2011 when wholesale electricity market prices reached historically high interim levels.

Draft decision

A draft decision was published for consultation on 6 May 2011. The draft decision document and supporting documents are available on the consultation page. Submissions on the draft decision closed at 3pm on Friday 13 May 2011 and cross submissions closed at 3pm on Thursday 19 May 2011.

The Authority was requested to publish the vSPD cases it used to calculate the remedial pricing cases in the draft decision:

The draft final prices in the draft decision were provided in a spreadsheet:

The draft remedial pricing spreadsheet inadvertently included trading period 21 on 26 March 2011. A revised draft remedial pricing spreadsheet with trading period 21 removed has been published:

Submissions and cross submissions

Correspondence

On 23 May 2011, Genesis Energy wrote to the Authority raising concerns regarding the Authority's consultation process. The Authority responded to Genesis Energy on 25 May 2011 and Genesis Energy wrote a further letter to the Authority on 31 May 2011:

Final UTS decision and proposed actions

On 15 June 2011, the Authority published its final decision that the events of 26 March 2011 constituted a UTS.

Also, on 15 June 2011, the Authority published the proposed actions that the Authority intends to take to correct the UTS.

The Authority's final decision and proposed actions are available on the consultation page. Submissions on the proposed actions closed at 5.00pm on Tuesday, 21 June 2011.

Submissions on proposed actions

Final decision and actions

On 4 July 2011 the Authority published its final decision and actions to correct the UTS of 26 March 2011:

Implementation of decision

On 21 July 2011 the Authority considered a request from Contact Energy to defer a decision on when to publish final prices for 26 March 2011. The Authority decided to defer this decision to publish until it received any directions from the High Court arising from the case management conference on the appeals against the final decision held on 25 July 2011.

At the case management conference on 25 July 2011, the High Court ordered a stay on the publication of final prices for 26 March 2011 pending a hearing on this matter on 16 August 2011 (see Minute from the High Court below under 'Appeals').

Appeals

Three appeals were filed against the final decision:

The parties below have filed notices and memoranda stating their position regarding the final decision and the role they wish to have in the appeals:

A case management conference on the appeals was held on 25 July 2011. At this conference, following an application by Bay of Plenty Energy and Todd Energy, the Court granted a stay on the publication of final prices for 26 March 2011 until a hearing on 16 August 2011.

The Minute from the case management conference is below. Key dates determined at the conference included:

  • 8 August 2011 - deadline for filing notices of intention to appear;
  • 16 August 2011 - a hearing:
    • on the application for a stay of the effect of the Authority's decision; and
    • to determine the status of all those wishing to be heard on the substantive determination of the appeals;
  • 28 November 2011 - the substantive hearing of the appeals against the Authority's decision.

Please see the Minute for other key dates:

At the hearing on 16 August 2011, the Court extended the stay on publication of final prices for 26 March 2011 until a further order of the Court. In practical terms, this means until the UTS appeals are determined, though the Court has the discretion to review this if the need arises. A five-day hearing of the appeals is scheduled for 28 November 2011, as noted above.

The Minute from the hearing is below:

On 27 February 2012, the High Court delivered its judgement that the Authority made:

(a) no error of law upon which its conclusions that a UTS existed on 26 March 2011 could be challenged; and

(b) no error of law in reaching a conclusion as to the appropriate remedy for the UTS on 26 March 2011.

On 26 March 2012, Genesis applied for leave to appeal the High Court's judgment to the Court of Appeal.

On 7 May 2012, the High Court granted Genesis' application to leave to appeal to the Court of Appeal and ordered the stay (i.e. the order preventing the Authority from publishing the revised interim prices for 26 March 2011 as final prices) was now lifted.

On 17 May 2012, the pricing manager published final prices for the 26 March 2011.

On 31 July 2012, the Court of Appeal allocated a fixture on 15 to 18 April 2013 for hearing Genesis' appeal to the Court of Appeal.

On 8 November 2012, Genesis advised that it had decided not to pursue its appeal to the Court of Appeal. Therefore, the High Court's decision stands that the Authority made no error of law that a UTS existed on 26 March 2011; and no error of law as to the appropriate remedy for the UTS.

UTS 12 November 2009

An Undesirable Trading Situation (UTS) claim was made by Contact Energy on 12 November 2009. Details of the claim are provided below:

Contact Energy subsequently withdrew the claim on 13 November 2009.

UTS 19 May 2009

An Undesirable Trading Situation (UTS) claim was made by Contact Energy Limited on 22 May 2009. Details of the claim are provided below.

The Commission ordered the delay of final prices for the 19th of May while the UTS claim was investigated.

The indicative final prices for trading period 16 (the period of the UTS claim) as calculated by the pricing manager are made available for participants' review. These prices include the effect of applying the high spring washer price situation relaxation methodology.

The Electricity Commission Board considered the claim of an Undesirable Trading Situation (UTS) for trading period 16 on 19 May 2009 on 9 June 2009. The Board found that no UTS existed and ordered that final prices for 19 May 2009 be published. The Board's formal decision and the Pricing Manager and System Operator reports are provided below:

UTS 21 April 2009

An Undesirable Trading Situation (UTS) claim was made by Contact Energy Limited on 30 April 2009. Details of the claim are provided below.

The Commission continued the delay to final prices and final reserve prices for the 21st of April 2009 so that it could consider the UTS claim.

Relevant reports from the Pricing Manager and System Operator can be found on the Wholesale pricing issues page.

The Electricity Commission Board considered the claim of an Undesirable Trading Situation (UTS) for trading periods 37 and 38 on 21 April 2009 on 8 May 2009. The Board found that no UTS exists and ordered that final prices for 21 April 2009 be published. The Board's formal decision is provided below:

UTS 13 February 2009

An Undesirable Trading Situation (UTS) claim was made by Contact Energy Limited on 18 February 2009. Details of the claim are provided below:

The Electricity Commission Board considered the claim of Undesirable Trading Situation (UTS) for trading period 24 on 13 February. The Board has found that there was no UTS. The Board's formal decision is provided below:

The Pricing Manager's report is made available for participants' information. Please note where the report refers to "would be final prices" those prices have now been published as final prices.

UTS 14 August 2008

An Undesirable Trading Situation (UTS) claim was made by TrustPower Ltd on 14 August 2008. Details of the claim are provided below:

UTS 24 June 2008

UTS 5 November 2007

The Commission received a UTS claim in the early evening on Monday 5 November 2007 from Contact Energy relating to trading period 33 on the same day:

On Tuesday 6 November 2007, Contact Energy withdrew the UTS claim in advance of final prices for Monday 5 November 2007 being published.

UTS 1 May 2006

UTS 12 July 2005

UTS 21 August 2004

UTS 29 June 2004

UTS 24 April 2004

Information Papers

Guidelines for Participants on Undesirable Trading Situations - version 2.1

Guidelines-for-Participants-on-UTS-v2.1.pdf | pdf | 136 KB | Last Changed: 15/12/2010 1:42pm

This page is related to: Code & Regulations.

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