The Authority commenced projects in the 2014/15 year to ensure that arrangements for its market operation service providers produced appropriate commercial disciplines and fit-for-purpose , value-for-money outcomes for the electricity marke
The projects resulted in the retendering of the pricing manager, clearing manager, reconciliation manager and wholesale information and trading system (WITS) manager contracts and the commencement of a review, development of the relationship and renegotiation of arrangements with Transpower as the provider of system operator services.
The aims are:
- new or renewed contracts for the pricing manager, clearing manager, reconciliation manager and WITS manager by 1 May 2016
- a new system operator service provider agreement to be effective by 1 July 2016
- the completion of any necessary Code amendments to give effect to the new arrangements with service providers to be effective as soon as possible and preferably before 1 July 2016.
Key outcomes of the projects to date are:
- The agreement of a Relationship Charter between Transpower as provider of system operator services and the Authority
- The selection of NZX as the preferred supplier for the four tender market operation service provider roles
Negotiations for an up-to-date system operator service provider agreement are well underway and are anticipated to meet the effective date target.
Negotiation with NZX is also underway and it is anticipated that the 1 May 2016 effective date will also be achieved.