Reliable supply and efficient operation of the electricity industry
Ensuring reliable supply of electricity
We oversee the operation of the electricity industry and markets through contracts with service providers for the day-to-day operation of the electricity market. In the retail market, we contract a registry manager to manage points of connection information. These points of connection make it a simple process for consumers to switch power companies.
The wholesale market involves bids to buy and offers to sell electricity. We contract several service providers to facilitate this process.
Ensuring the efficient operation of the electricity industry
To make sure the industry is efficient, we administer and enforce The Electricity Industry Participation Code 2010 (we call it the Code for short). The Code is a set of rules that govern the electricity industry.
The Code covers nearly every aspect of the electricity industry including:
- system operation
- security of supply
- market arrangements
Operation of the electricity system and markets
We are responsible for the day-to-day (real-time) operation of the electricity system and markets. Efficient and reliable day-to-day operations are fundamental to ensuring effective competition.
To achieve this, we contract out all of the required functions to service providers, with the exception of some operational and administrative services, as follows:
- The system operator is responsible for the real-time operation of the power system, including scheduling and dispatching electricity, in a manner that avoids undue fluctuations in frequency and voltage on the transmission grid.
- The wholesale information trading system (WITS) is used to transfer information among participants, especially the uploading of bids and offers.
- The reconciliation manager allocates volumes of electricity to generators and purchasers. It uses metering information supplied by participants and calculates unaccounted for electricity.
- The pricing manager calculates and publishes final prices, which are used by the clearing manager to calculate invoices.
- The clearing manager invoices and settles physical electricity sales and purchases identified by the reconciliation manager, ancillary service payments and any financial hedges required to be taken into account in the prudential calculation. It also maintains prudential security requirements.
- The registry manager maintains a database that identifies every customer point of electricity connection to a local or embedded network. The database enables customer switching between retailers and contains key information for the reconciliation process.
- The FTR manager is a newly established market operation service provider charged with running regular auctions of financial transmission rights (FTRs), which are a new locational hedge product.
- The extended reserve manager is a newly established market operation service provider charged with creating the procurement schedule and monitoring the performance of procured demand units. The extended reserve manager is part of the project to transition to the new extended reserves regime.
- The Authority provides a number of operational and administrative services under the Code.