29 January 2019

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

Contents

Submissions published: Market enhancement omnibus – review of metering and related registry processes

We have published submissions in response to the review of metering and related registry processes consultation. We consulted on 28 different issues, and submissions closed on 13 November 2018. This was part of the market enhancement omnibus. 

The submissions are now available on our website.

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Acting General Manager Market Design – Rob Bernau

We are pleased to welcome Rob Bernau as Acting General Manager Market Design. Rob is on secondment from the Commerce Commission and will start at the Authority on Monday, 4 February 2019. This start date gives Rob a two-week handover period with John Rampton. 

Rob is currently the Head of Energy, Airports and Dairy Regulation at the Commerce Commission. As such, he is responsible for the Commission’s economic regulation of electricity lines, gas pipelines and major airports, and for the Commission’s regulatory functions in the dairy sector. 

He has also worked for New Zealand Post in network access and legal roles, and for Chapman Tripp. He has an LLB (Hons) from the University of Otago.

Recruitment for a permanent appointee to the General Manager Market Design role is underway, and we intend to have the position filled in May 2019.   

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Replacement system operator policy statement

In October 2018 we published a consultation paper about the system operator’s proposals for changes to its policy statement. That policy statement sets out the policies and means by which the system operator will fulfil some of its core functions including security and dispatch, and associated policies such as compliance and conflicts of interest.

Following that consultation, we have now incorporated a replacement policy statement into the Electricity Industry Participation Code 2010 (Code).

We have summarised the submissions and cross-submission we received, and explained our decision to approve the replacement of the policy statement. The documents are available on our website.

The Gazette notice and a certified copy of the amended policy statement are also available on our website.

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Determination of connection charges payable by a distributed generator

Recently, the Authority applied the pricing principles in Schedule 6.4 of the Code to resolve a dispute between a distributor and a distributed generator. The dispute primarily related to connection charges the distributor had imposed on the distributed generator. 

The Authority is releasing an anonymised version of the determination to provide information and guidance for distributors and distributed generators on the application of the pricing principles in Schedule 6.4 of the Code, while maintaining relevant confidentiality obligations.

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Code Amendment: Electricity Industry Participation Code Amendment (Code Review Programme) 2018

On 1 February 2019 further amendments from the Electricity Industry Participation Code Amendment (Code Review Programme) 2018, will come into force.
  
These amendments are to  Parts 1, 11, and 15 of the Code.

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Energy Trader Forum: Hedging in a volatile electricity market

As part of its work to provide insight and updates for participants in the electricity market, the Energy Trader Forum is hosting its quarterly meeting at Rydges Hotel in Wellington on Thursday, 14 February from 1.30 pm to 6.00 pm. 

Genesis Energy (Shaun Goldsbury – General Manager Wholesale and Julian McCree – Derivatives Manager) will provide insights into the hedging process and the options available for market participants to manage their exposure.

The meeting will also include a presentation from the Gas Industry Company, the Energy Buyers' & Sellers' Forum and the regular Market Updates session.

Subscribe to the Energy Trader Forum newsletter to receive full updates or visit the website to register to attend the February meeting.

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Reminder: NZX Energy customer satisfaction survey

We remind participants to complete the NZX user satisfaction survey.

NZX has set a deadline for the survey of 12 February 2019.

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Current consultations

Review of regulatory settings for official conservation campaigns

We are consulting on the regulatory settings for official conservation campaigns. This review is being coordinated with Transpower’s consultation on its review of the security of supply forecasting and information policy.

Started: 11/12/2018; Ending: 11/02/2019 5pm

More efficient distribution prices consultation

We are reviewing the principles for distribution pricing to clarify our expectation that the price anyone pays reflects the costs of the electricity distribution service they are getting.

Started: 11/12/2018; Ending: 19/02/2019 5pm

Proposal to amend requirement for advisory group Chairs to be independent

We are consulting on a proposal to relax the requirement for advisory group Chairs to be independent. The consultation proposes minor changes to the Charter for advisory groups and the Terms of reference for the Security and Reliability Council and other advisory groups.

Started: 22/01/2019; Ending: 19/02/2019 5pm

Consultation calendar

Download and view our high-level consultation calendar (PDF)

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