FTR Code amendment proposals
On 11 August 2011, the Electricity Authority gazetted (No. 123, p.3402) an amendment to the Electricity Participation Code 2010 (Code) to allow for the introduction of financial transmission rights. The amendment came into effect on 1 October 2011.
As preparations are made for the start of the FTR market on 1 May 2013, a number of issues with the Code have been identified. In response to a number of Code amendment proposals seeking further clarification of the Code, the Authority has released this consultation paper seeking industry feedback on the proposed solutions.
About this consultation
This consultation paper proposes the following changes to the Code:
- where revenue inadequacy arises, the clearing manager will be required to scale FTR Hedge Values (whether positive or negative) to re-establish balance between invoiced inflows into the FTR account and invoiced outflows from the FTR account;
- provision is made for the situation where a payer default on settlement day means that insufficient revenue is paid into the FTR account from payers to fund invoiced amounts to payees from the FTR account. All amounts to be paid out of the FTR account to payees and to grid owners will be scaled pro rata;
- clarification around how FTR-related amounts are to be included on payer and payee invoices;
- arrangements for invoicing when final pricing is delayed such that the delayed trading periods cannot be settled at the same time as the other trading periods in the month;
- changes to schedule 14.6 calculations to use balanced injection patterns only; and
- a number of minor changes.
An informal briefing session on these issues was held at the Electricity Authority on Monday, 23 July 2012. The presentations and worked examples of the different options are available from the project page.
The Authority's preference is to receive submissions in electronic format (Microsoft Word). It is not necessary to send hard copies of submissions to the Authority, unless it is not possible to do so electronically.
Submissions in electronic form should be emailed to email@example.com with Consultation Paper - FTR Code amendments in the subject line.
If submitters do not wish to send their submission electronically, they should post one hard copy of their submission to the address below:
PO Box 10041
Level 7, ASB Bank Tower
2 Hunter Street
Tel: 04 460 8860
Fax: 04 460 8879
Submissions should be received by 5pm on Monday, 30 July 2012. Please note that late submissions are unlikely to be considered.
The Authority will acknowledge receipt of all submissions electronically. Please contact the Submissions' Administrator if you do not receive electronic acknowledgement of your submission within two business days.
Your submission is likely to be made available to the general public on the Authority's website. Submitters should indicate any documents attached, in support of the submission, in a covering letter and clearly indicate any information that is provided to the Authority on a confidential basis. However, all information provided to the Authority is subject to the Official Information Act 1982.
The table of questions from Appendix 1 of the consultation appears separately as a suggested template for your submission.
FTR-Code-amendment-proposals-consultation-paper.pdf | pdf | 543 KB | Last Changed: 06/07/2012 4:16pm