11 June 2019

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

Contents

Submissions published: 2019/20 Levy-funded appropriations and indicative work programme

We have published the submissions received on our 2019/20 Levy-funded appropriations and indicative work programme.

We considered the submissions on our proposed appropriations before reporting to the Minister in February 2019 with our recommended appropriations for the 2019 Budget. Consultation feedback also informed our development of the 2019/20 Statement of Performance Expectations (SPE). 

The SPE will be published in late June 2019. The work programme will be finalised in June 2019 and published in July 2019.

The submissions are available on our website.

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Post-implementation review of the retail data project

The Authority has completed a post-implementation review of the retail data project. The aim of the retail data project was to improve access to consumption, connection and tariff data. The Authority expected this would lead to consumers becoming more active and informed, more consumers shopping around and increased competition. Changes to the Electricity Industry Participation Code 2010 (Code) for the project came into force on 1 February 2016.

The purpose of post-implementation reviews is to evaluate an initiative against its expected outcomes. This review found that while connection data access is working well and tariff data access is working adequately, the problems with accessing consumption data are likely preventing the benefits of the retail data project being realised.

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Settlement approved 

We have approved a settlement between Transpower, as the grid owner and as the system operator, and Mainpower New Zealand Limited concerning self-reported breaches of the Code by the grid owner. 

The breaches concerned three separate events when the grid owner’s protection settings were not selective during faults, so the minimum amount of assets was electrically disconnected. The assets disconnected were transformers at Invercargill, Bombay and Southbrook grid exit points.

The settlement agreement is available to view on our website.

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Stress test scenarios unchanged for the July-September quarter of 2019

The stress test scenarios previously published on the Authority's website will apply for the July-September quarter of 2019. There is no change from the previous quarter.

The stress-testing regime requires certain participants in the wholesale electricity market to apply a set of standard stress tests to their market position, and report the results to their Board and to the NZX as the independent registrar appointed by the Authority.

Questions about the stress tests can be directed to marketoperations@ea.govt.nz

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Auditor rotation requirements effective from 1 June 2019

The Code requires audits of participants involved in determining inputs into the wholesale settlement of the electricity market.

The Authority issued a reminder to all audited participants that clause 16A.7 of the Code requires participants to appoint a new auditor at the later of:

  • 24 months after their first audit (conducted after 1 June 2017); or
  • two consecutive audits. 

This means clause 16A.7 will apply for audits conducted from 1 June 2019. But a participant that has not had their second audit yet won’t need to rotate auditors until after that second audit.

The memo is available on our website. 

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Reminder: Call for nominations for MDAG membership

We are calling for nominations for five members to join the Market Development Advisory Group (MDAG), because the membership terms for five current members will soon end.

More details — including the nomination form, the role of an MDAG member, charter and terms of reference for the advisory groups — are available on our website.

Any queries with regard to the nomination process or the purpose of the MDAG can be sent to MDAG@ea.govt.nz

Nominations close at 5pm on Tuesday, 25 June 2019.

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Reminder: Call for nominations for IPAG membership

We are calling for nominations for three members to join the Innovation and Participation Advisory Group (IPAG), because the membership terms for three current members will end soon. 

More information about the IPAG — including a short video from Chair John Hancock, charter and terms of reference for the advisory groups — is available on our website.

Any queries with regard to the nomination process or the purpose of the IPAG should be sent to IPAG@ea.govt.nz

Nominations close at 5pm on Tuesday, 25 June 2019.

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Current consultation

Closing today: Quick wins for increasing access to electricity services

We are consulting on proposed steps to make it easier for electricity consumers to share their historical consumption data with organisations they trust. This is part of our Additional Consumer Choice of Electricity Services (ACCES) project which seeks to enable greater consumer uptake of electricity services.

Started: 30/04/2019; Ending: 11/06/2019 5pm

Consultation calendar

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

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