The aim of the project is to review the trading conduct provisions in light of events that have tested them, to ensure the provisions are effective in promoting outcomes consistent with workable competition.
The trading conduct provisions came into effect in June 2014, and have been tested by various events in subsequent years. The aim of the project, Review of spot market trading conduct provisions, is to review the trading conduct provisions in light of those events, to ensure the provisions are effective in promoting outcomes consistent with workable competition. The Authority decided in November 2017 to ask the Market Development Advisory Group to investigate this matter and provide recommendations on what might need to change. There are a broad range of trading conduct issues the provisions could cover, and MDAG is initially focussing on trading conduct when parties are pivotal – this means they do not face competition, usually in the short term, for some portion of their supply.
More information about this project is available in the MDAG meeting papers.