7 February 2017


Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.




Update of indicative transmission charge estimates


In December 2016, we published the Transmission Pricing Methodology – Second Issues Paper Supplementary Consultation document. Appendix F of that paper contained indicative estimates of transmission charges.

Concept Consulting (which undertook the modelling of charges) has recently advised that there was a calculation error that affects some results.

Consequently, we have provided a corrected version of Appendix F. In addition, an updated set of estimated charges is set out in a document available on our website, which shows the changes from correcting for the error. The impact of the error is within what could be expected under an alternative, but valid application of the same TPM guidelines. For most customers, there is relatively little (or no) change to their estimated charges. We have also provided an updated modelling spreadsheet.

As we stated in the December 2016 paper, the transmission charge estimates are based on assumptions and simplifications in some areas, and should, therefore be treated as broadly indicative only.

Although the updated charge estimates are similar to those published previously (and remain indicative), we are publishing them to ensure transparency around estimated financial impacts.

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Submissions on Requirements and Processes for Audits: New Guidelines


We have published submissions received on our consultation about guidelines and supporting information for auditors and audited participants.

This was the first of two planned consultations on guidelines and supporting information for the audit regime. 

The submissions are available on our website.

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Comments on application for exemption from section 76 of the Act


In December 2016, Top Energy Limited and Ngawha Generation Limited requested an exemption from section 76 of the Electricity Industry Act 2010 (Act). 

As part of this process, we invited interested parties to comment. We received two submissions and one query in response to the application, as outlined below:

  • Northland Regional Council
  • Pioneer Generation Limited
  • the Major Electricity Users’ Group (MEUG) asked for additional information relating to funding costs.  While this request was declined, the funding arrangements are one issue that we will consider during the assessment process

We will review comments as part of our assessment process. The comments are available on our website.

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Exemptions granted and revoked


We have granted and gazetted a new exemption (application No. 250) and subsequently revoked an exemption (application No. 146).

Trustpower is exempted from complying with the obligation in clause 10.14(2)(b) of the Electricity Industry Participation Code 2010 not to treat predictable load, expected to exceed 6,000 kWh in any 12 month rolling period, as unmetered load. 

Following the approval of exemption No. 250, we revoked Trustpower’s previous exemption (No. 146).

The Gazette notices, including reasons for the approval and subsequent revoking, are available on our website.

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Electricity registry: Access changes from 1 March 2017


In line with industry best practices, we are upgrading some security aspects of the registry internet-facing services. The upgrades aim to improve communications security and privacy, by only offering strong encryption protocols and by mitigating attempts to intercept or tamper with client data in transit. 

We are planning to make the change to the production version of the registry on 1 March 2017. We strongly recommend that you review the detailed memo published on our website to find out if the changes affect you, so that your in-house IT or software provider can make any changes by 1 March 2017. 

If you or your in-house IT or software provider has any questions about the technical details of the changes, please contact the registry engineer at registry.engineer@jadeworld.com

If you have any questions about the reasons for the changes or the timing, please contact the Market Operations team at marketoperations@ea.govt.nz.

The memo is available on our website.

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Current consultations


Transmission Pricing Methodology: supplementary consultation

We have released a supplementary consultation paper setting out proposed refinements to our proposal in our May 2016 Transmission Pricing Methodology (TPM) second issues paper.

Started: 13/12/2016; Ending 24/02/2017 5 pm

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