This legislation is administered by the Electricity Authority. For more information please see:

Website: https://www.ea.govt.nz/

Contact phone: +64 4 460 8860

Contact address: PO Box 10041, Wellington 6143

Electricity Industry Participation Code (Improving Prudential Security Arrangements) Amendment 2026

This amendment to the Electricity Industry Participation Code 2010 (Code) is made under section 38 of the Electricity Industry Act 2010 (Act) by the Electricity Authority having complied with section 39 of the Act.

	Contents
1	Title	2
2	Commencement	2
3	Code amended	2
	Part 11 Amendments to Part 11 of the Electricity Industry Participation Code
4	Clause 4 of Schedule 11.5 amended	2
5	Clause 5 of Schedule 11.5 amended	2
	Part 2 Amendments to Part 14A of the Electricity Industry Participation Code
6	Clause 14.34A amended (Payment of residual funds from operating accounts)	2
	Part 3 Amendments to Part 14A of the Electricity Industry Participation Code
7	Clause 14A.17 amended (Participants subject to prudential requirements must provide information to clearing manager)	3
8	Clause 14A.22 amended (Clearing manager to keep register of specific time periods)	3

Amendment

1 Title

This is the Electricity Industry Participation Code (Improving Prudential Security Arrangements) Amendment 2026.

2 Commencement

This amendment comes into force on 30 November 2026.

3 Code amended

This amendment amends the Electricity Industry Participation Code 2010.

Part 1

Amendments to Part 11 of the Electricity Industry Participation Code

4 Clause 4 of Schedule 11.5 amended

Replace clause 4(2)(b)(ii) of Schedule 11.5 with:

(ii) the customer should enter into a contract for the purchase of electricity with another trader or retailer by the date that is:

(A) 13 days after the day on which the Authority gave written notice to the defaulting trader or defaulting retailer under clause 2(1) if the defaulting trader or defaulting retailer is recorded in the registry as being responsible for 1,000 or fewer ICPs; or

(B) otherwise 14 days after the day on which the Authority gave written notice to the defaulting trader or defaulting retailer under clause 2(1):

5 Clause 5 of Schedule 11.5 amended

In Schedule 11.5, clause 5(1), insert “, or the end of the 13th day after the defaulting trader or defaulting retailer was given notice under clause 2(1) if the defaulting trader or defaulting retailer is recorded in the registry as being responsible for 1,000 or fewer ICPs” after “clause 2(1)”.

Part 2

Amendments to Part 14 of the Electricity Industry Participation Code

6 Clause 14.34A amended (Payment of residual funds from operating accounts)

(1) In clause 14.34A(3)(b):

(a) replace “the clearing manager has paid” with “have paid the clearing manager”; and

(b) replace “clause 14.20(2)(a)” with “clause 14.19(2)(a)”.

(2) Replace clause 14.34A(3)(c) with:

(c) by allocating the residual funds available to the participants identified under paragraph (b), in direct proportion to the amount each participant has paid the clearing manager in the applicable period compared to the total amount all participants identified under paragraph (b) have paid the clearing manager in accordance with clause 14.19(2)(a) in that period:

(3) In clause 14.35A(4)(a):

(a) replace “the clearing manager has paid” with “has paid the clearing manager”; and

(b) replace “clause 14.20(2)(a)” with “clause 14.19(2)(a)”.

Part 3

Amendments to Part 14A of the Electricity Industry Participation Code

7 Clause 14A.17 amended (Participants subject to prudential requirements must provide information to clearing manager)

In clause 14A.17, after subclause (3)(c), insert:

(d) if the participant is a retailer, any change to the number of ICPs the retailer is recorded in the registry as being responsible for, if that change will result in the retailer:

(i) being responsible for 1,000 ICPs or fewer, if the retailer’s post-default exit period is currently determined under clause 14A.22(4)(a)(ii); or

(ii) being responsible for more than 1,000 ICPs, if the retailer’s post-default exit period is currently determined under clause 14A.22(4)(a)(i).

8 Clause 14A.22 amended (Clearing manager to keep register of specific time periods)

(1) Replace clause 14A.22(4)(a) with:

(a) for a retailer,—

(i) 14 trading days if the retailer is recorded in the registry as being responsible for 1,000 ICPs or fewer; or

(ii) 18 trading days if the retailer is recorded in the registry as being responsible for more than 1,000 ICPs:

(2) After subclause 14A.22(6), insert:

(6A) A retailer to whom subclause (4)(a)(i) applies may increase the post-default exit period to no more than 18 trading days by giving 20 business days’ notice to the clearing manager.

(3) After subclause 14A.22(7), insert:

(7A) The post-default exit period under subclause (4)(a)(i) takes effect 20 business days after the date a retailer advises the clearing manager that it is recorded in the registry as being responsible for 1,000 ICPs or fewer.

Made at Wellington on 18 August 2026

John Harbord

Chair

Electricity Authority

Certified in order for signature:

Nichola Lambie Rachael Brown

Manager Legal – Legislation Partner

Electricity Authority Bell Gully

14 August 2026 11 August 2026

Explanatory Note

This note is not part of the amendment but is intended to indicate its general effect.

This amendment to the Electricity Industry Participation Code 2010 comes into force on 30 November 2026.

The amendment amends Parts 11, 14 and 14A of the Code to:

a. reduce the post-default exit period from 18 to 14 trading days for retailers recorded in the registry as being responsible for 1,000 or fewer ICPs, with associated changes to the process to be followed for an event of default involving a trader or retailer; and

b. reallocate residual funds held in the clearing manager’s operating accounts to wholesale market purchasers of electricity, in direct proportion to the amount each purchaser has paid the clearing manager in the applicable period.

This is secondary legislation issued under the authority of the Legislation Act 2019.
Title	Electricity Industry Participation Code (Improving Prudential Security Arrangements) Amendment 2026
Principal or amendment	Amendment
Consolidated version	No
Empowering Act and provisions	Electricity Industry Act 2010, section 38
Replacement empowering Act and provisions	Not applicable
Maker name	Electricity Authority
Administering agency	Electricity Authority
Date made	18 August 2026
Publication date	26 August 2026
Notification date	25 August 2026
Commencement date	30 November 2026
End date (when applicable)	Not applicable
Consolidation as at date	Not applicable
Related instruments	Electricity Industry Participation Code 2010