Background to 2019/20 wholesale market information disclosure project
Effective information disclosure is important for a well-functioning market. It can eliminate information asymmetry, improve efficiency in a market, and enhance the confidence and integrity of the forward price curve. We see disclosure rules as needing to continually evolve to raise the disclosure bar over time.
We have commenced the next phase of the project which will review information disclosure needs and issues raised with thermal fuel related disclosure.
Market conditions in Spring 2018 highlighted concerns about access to information to support a well-functioning market. Concerns about levels of information disclosure in the gas market (and related overlap to the electricity market) have since been echoed by the Minister for Energy and Resources, the Electricity Price Review, MBIE, market makers that do not operate in the gas market and independent retailers. The Gas Industry Company have been working on understanding the information gaps in the gas market, and we will be collaborating closely with them on this project.
What will the project include?
During calendar year 2020, the team expect to focus on identifying and closing any gaps related to expected availability of coal and gas plants, including reviewing the exclusions, with a view to improving the efficient functioning of the electricity market. We will also consider what other information disclosure gaps might exist. A consultation paper is planned for mid-2020, and if relevant, a decision paper is planned for December 2020.
Please contact WMID@ea.govt.nz at any point if you have questions for the project team.