This also includes preventative monitoring based on risk assessment.

The purpose of compliance monitoring is to support and educate industry participants to understand their obligations under the Act, regulations and Code, and to improve their compliance culture by reviewing their processes and compliance policies to avoid breaches before they occur. Monitoring enables us to:

  • assess compliance in a cost-effective manner
  • target our resources at risk areas
  • respond quickly to changing circumstances
  • strengthen our relationship with the electricity industry.

We monitor compliance in the following areas:

  • two hour (30 minute) rule revisions
  • the quality of hedge contract information
  • the Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004
  • Part 3 of the Act about the separation of distribution from certain generation and retailing
  • industry participants’ register
  • demand side bidding and forecasting
  • awareness of the Act, regulations and Code
  • periodic testing requirements on asset owners
  • publication of information under Part 6 of the Code
  • Part 10 of the Code - accuracy of market reconciliation information 

This approach supports the prevention of breaches of the Act, regulations and Code and is preferred to enforcing compliance using the breach process.

However, in cases where non-compliance causes a high risk or where a major impact has occurred, we will further investigate and consider enforcement action.

Compliance - Code breach process