28 March 2017

 

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

 
 

Contents

 
 
 
 
 
 
 
 

Cross-submissions published—Transmission pricing methodology (TPM) review: second issues paper: supplementary consultation paper

 
 

We have published cross-submissions on the TPM second issues paper: supplementary consultation paper.

We invited cross-submissions on the valuation method for determining the total and annual amount to be recovered under the proposed area-of-benefit charge for an investment.

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Consultation on enhancements to market for Financial Transmission Rights

 
 

We are seeking feedback on 12 options for improving the Financial Transmission Rights (FTRs) market, which could help participants manage locational price risk more easily and effectively. 

We are seeking feedback to determine which, if any, of the 12 options are worth considering further. We think eight of the options could be led by our service providers, and we are seeking high-level comment on those options to inform their priority. 

We are seeking detailed comments on the other four options. One of these is to allow Australian-based parties to directly trade FTRs. We think it could have efficiency benefits for the FTR market and wider hedge market. However, increases in participation could make it harder to acquire FTRs, since there is a limited supply. Therefore, we are also seeking feedback on options that could address the inherent supply constraints.

Submissions close at 5 pm on Tuesday, 9 May 2017.

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Normal Frequency Management – Strategic Review information paper

 
 

We are reviewing the arrangements for managing normal frequency to investigate options to further promote the efficiency limb of the Authority’s statutory objective. Matters to be considered include the asset owner performance obligations for generators, the proposed national market for frequency keeping, cost allocation, and dispatch processes.

We have published an information paper that includes results of analysis completed by the Authority, supported by detailed technical reports from the system operator. Publishing the paper provides an opportunity for interested parties to provide feedback on the proposed future arrangements for normal frequency management.

Submissions close at 5 pm on Tuesday, 9 May 2017.

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Security and Reliability Council appointments

 
 

We recently sought nominations to fill three positions on the Security and Reliability Council (SRC). The three positions relate to one resignation and two expiring memberships, including the chairperson.

The SRC Charter specifies a range of selection criteria and requires the SRC as a whole to include a balance of knowledge regarding the long-term interests of consumers, power systems engineering and analysis, generation and demand-side management technologies, and regulatory and economic analysis. 

We received nominations from a number of highly qualified candidates and we are pleased to announce:

  • the reappointment of Mike Underhill as independent chairperson, term expiring 31 March 2020
  • the reappointment of Barbara Elliston as an ordinary member, term expiring 31 March 2020
  • the appointment of Marc England as an ordinary member, term expiring 31 March 2019.

SRC member biographies are available on our website. 

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Old WITS Free to Air website to be decommissioned

 
 

In October 2016, in collaboration with NZX, we released the new Wholesale Information Trading System (WITS) Data Hub. 

The WITS Data Hub replaces the old WITS Free to Air website (https://www.electricityinfo.co.nz), which will be decommissioned on 31 May 2017. 

From 31 March 2017, you can access the new WITS Data Hub from either of the following links:

From 31 March 2017, you can temporarily access the old WITS Free to Air website from this link:

Please send an email to wits@nzx.com if you have any questions.

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Second training course for registry users, 27–28 June 2017

 
 

We are running a second hands-on training course for registry users on 27 and 28 June 2017, from 9.30 am to 4 pm, in Auckland. The course is suitable for new registry users and people wanting to gain some knowledge of how the registry works. Attendees will engage in hands-on exercises and role-playing. 

The training course will cover the following:

  • the operation of the registry and lifecycle of an ICP including the registry roles of distributor, trader and metering equipment providers
  • the operation of the reconciliation manager portal to upload and download files, manage trade notifications, and add/edit changes to NSPs and balancing areas.

We need to set up individual workstations for registry access, so total attendance numbers are limited and may also be limited by organisation.

To express interest in attending the course, please email your name and contact details to marketoperations@ea.govt.nz by COB Friday, 31 March 2017 with ‘June 2017 registry training’ in the subject line. 

Places will fill fast, but please do not book flights and accommodation until you have received confirmation of attendance.

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Current consultations

 
 

Making hours-ahead price forecasts more accurate

We have published a consultation paper about ways to improve the accuracy of prices in the forecast schedules that are available up to 36 hours in advance of real-time.

Started: 21/02/2017; Ending 4/04/2017 5 pm

Requirements and processes for audits

We are consulting on inherent risk registers and updated guidelines for auditors and audited participants, to reflect changes to the Code that come into force on 1 June 2017.

Started: 28/02/2017; Ending 11/04/2017 5 pm

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