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ELECTRICITY AUTHORITY .,,,---;::;-    

TEMANAHIKO �-   

Electricity Industry Participation Code (Emergency Reserve) 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 that Act.

1. Title

2. Commencement

3. Code amended

   Contents

   2

   2

   2

   Part 1

   Amendments to Part 1 of Electricity Industry Participation Code

4. Clause 1.1 amended (Interpretation) 2

   Part2

   Amendments to Part 8 of Electricity Industry Participation Code

5. Subpart 4 heading in Part 8 amended 4

6. Clause 8.54A amended (Contents of this subpart) 4

7. Clause 8.54B amended (Ancillary service agents to provide information about 4

   interruptible load)

8. New clause 8.54BA inserted (Provision of information about the use of emergency 4

   reserve)

   8.54BA Provision of information about the use of emergency reserve 4

9. New clause 8.58A inserted (Emergency reserve costs are allocated to purchasers) 5

   8.58A Emergency reserve costs are allocated to purchasers 5

10. Schedule 8.3, Technical Code B, new clause 5B inserted 5

11. Schedule 8.3, Technical Code B, clause 6 amended 5

12. Schedule 8.3, Technical Code B, clause 7 amended 6

13. Schedule 8.3, Technical Code B, clause 9 amended 6

    Part3

    Amendments to Part 12 of Electricity Industry Participation Code

14. Schedule 12.2, clause 4 amended 6

    Part4

    Amendments to Part 13 of Electricity Industry Participation Code

15. Schedule 13.3AA, clause 3 amended 6

Amendment

1. Title

   This is the Electricity Industry Participation Code (Emergency Reserve) Amendment 2026.

   
   

2. Commencement

   This amendment comes into force on 1 March 2026.

   
   

3. Code amended

   This amendment amends the Electricity Industry Participation Code 2010.

   
   

   Part 1

   Amendments to Part 1 of Electricity Industry Participation Code

   
   

4. Clause 1.1 amended (Interpretation)

   1. In clause 1.1(1), insert in their appropriate alphabetical order:

      activate, for the purpose of emergency reserve, means the process of issuing instructions and notifications to providers of emergency reserve for the use of emergency reserve in real time, as specified in the procurement plan

      
      

      emergency reserve means

      1. an ancillary service that provides access to generation capacity or load that can be used to minimise the electrical disconnection of demand in a grid emergency, as specified in the procurement plan; but

      2. excludes any generating capacity or load that

         
         

         (ii)

         1. otherwise provides services -

            1. in the wholesale market other than black start; or

            2. in response to a contract or other arrangement with a purchaser or asset owner in circumstances that may correspond with a grid emergency; or

               has been used to provide the services referred to in paragraph (i) within the 12 months prior to being offered for use as emergency reserve, except for

               
               

               (iii)

               1. load that has been used to provide interruptible load but is no longer being offered for use as interruptible load; or

               2. generating capacity or load that has been used to provide a service but where provision of the service ceased due to circumstances outside the ancillary service agent's control; or

               is provided by an energy storage system, other than an energy storage system that is located on a consumer's premises for the purpose of reducing demand from the grid

               
               

               emergency reserve event is an event involving the pre-activation or activation of emergency reserve in a grid emergency, or when a grid emergency is reasonably foreseeable by the system operator, in accordance with an emergency reserve contract and as specified in the procurement plan

               
               

               emergency reserve event cost means the total costs payable under emergency reserve

               contracts relating to an emergency reserve event within a billing period

               
               

               emergency reserve event trading period means the relevant trading period or periods in which an emergency reserve event occurs

               
               

               emergency reserve pre-event cost means the total amount of pre-event costs payable under emergency reserve contracts within a billing period

               
               

               emergency reserve pre-event trading period means the relevant trading period or periods in which the system operator determines that emergency reserve must be available, as specified in the procurement plan or emergency reserve contract

               
               

               pre-activate, for the purposes of emergency reserve, means the process of issuing instructions and notifications to providers of emergency reserve to prepare for the use of emergency reserve, as specified in the procurement plan

   2. In clause 1.1(1), definition of allocable cost, replace "8.58" with "8.58A".

   3. In clause 1.1(1), definition of ancillary service, after "black start," insert "emergency reserve,".

   4. In clause 1.1(1), definition of bona fide physical reason, after paragraph (ba), insert: (bb) in relation to an ancillary service agent providing emergency reserve,-

      1. a reasonably unforeseeable full or partial loss of demand or reserve capability (as the case may be) that is the subject of an ancillary service arrangement to provide emergency reserve; or

      2. a reasonably unforeseeable full or partial loss of generating capability from an item of generating plant that is the subject of an ancillary service arrangement to provide emergency reserve; or

      3. a reasonably unforeseeable change in circumstances such that the ancillary service agent will breach any consent held by it under the Resource Management Act 1991; and                             

   5. In clause 1.1(1), definition of controllable load,-

      
      

      1. in paragraph (c), after "dispatch notification generator" insert"; and"; and

      2. after paragraph (c), insert:

         (d) any contracted emergency reserve

   6. In clause 1.1(1), replace the definition of expected unserved energy with:

      expected unserved energy means a forecast of the aggregate amount by which the demand for electricity exceeds the supply of electricity at each grid exit point as a result of-

      1. likely planned or unplanned outages of primary transmission equipment; or

      2. a grid emergency

   Part2

   Amendments to Part 8 of Electricity Industry Participation Code

   
   

5. Subpart 4 heading in Part 8 amended

   In Part 8, in in the subpart 4 heading, insert "and emergency reserve" after "Interruptible load".

   
   

6. Clause 8.54A amended (Contents of this subpart)

   In clause 8.54A, after "interruptible load" insert "and emergency reserve".

   
   

7. Clause 8.54B amended (Ancillary service agents to provide information about interruptible load)

   1. In the heading to clause 8.54B, after "interruptible load" insert "and emergency

      reserve".

   2. In clause 8.54B, insert "or emergency reserve" after "interruptible load" in each place.

   3. In clause 8.54B(2)(b), insert "activated or" before "interrupted".

   
   

8. New clause 8.54BA inserted (Provision of information about the use of emergency reserve)

   After clause 8.54B, insert:

   8.54BA Provision of information about the use of emergency reserve

   The system operator must, within 20 business days of the conclusion of a grid emergency for which the system operator has procured or activated emergency reserve, publish a report containing:

   1. the total amount of emergency reserve procured in anticipation of the grid emergency;

   2. the total amounts of emergency reserve pre-activated or activated during the grid emergency;

   3. the estimated emergency reserve pre-event cost related to the grid emergency and the corresponding emergency reserve pre-event trading periods;

   4. the estimated emergency reserve event cost related to the grid emergency

      and the corresponding emergency reserve event trading periods;

      
      

      
      

   5. the estimated expected unserved energy that was avoided by the activation

      of emergency reserve; and

   6. the estimated value of expected unserved energy that was avoided by the

      activation of emergency reserve.

      
      

9. New clause 8.58A inserted (Emergency reserve costs are allocated to purchasers)

   After clause 8.58, insert:

   8.S8A Emergency reserve costs are allocated to purchasers

   The allocable cost of emergency reserve must be paid by purchasers to the system operator in accordance with the process in clause 8.68. Those costs must be calculated in accordance with the following formula:

   
   

   SharePuRx =

   
   

   where SharepuRx

   
   

   ERPct

   
   

   ERPOfftakePuRxt

   ERPct x max(0,"'i.tERPOfftakepuRxt)J

   
   

   "'i.xmax(0,I.t ERPOfftakePuRxt)

   l

   + [EREct x max(0,I.tEREOfftakepuRxt)] Lx max(0,"'i.tEREOfftakepuRxt)

   
   

   is purchaser x's share of emergency reserve allocable costs.

   
   

   is the emergency reserve pre-event cost in the billing period.

   
   

   is the total reconciled quantity in kWh for purchaser x across all grid exit points in emergency reserve pre-event trading periods in the billing period.

   
   

   EREct

   EREOfftakePuRxt

   is the emergency reserve event cost in the billing period.

   
   

   is the total reconciled quantity in kWh for purchaser x across all grid exit points in emergency reserve event trading periods in the billing period.

   
   

10. Schedule 8.3, Technical Code B, new clause SB inserted

    In Schedule 8.3, Technical Code B, after clause SA insert:

    SB An ancillary service agent must, as soon as reasonably practicable following a request by the system operator, inform the system operator of its available emergency reserve using a method or form agreed with the system operator.

    
    

11. Schedule 8.3, Technical Code B, clause 6 amended

    1. In Schedule 8.3, Technical Code B, clause 6(1), after paragraph (c) insert: (ca) activate emergency reserve:

       
       

    2. In Schedule 8.3, Technical Code B, clause 6(2), after paragraph (c) insert:                (ca) activate emergency reserve:

    
    

12. Schedule 8.3, Technical Code B, clause 7 amended

    In Schedule 8.3, Technical Code B, clause 7, after "interruptible load" insert "or

    emergency reserve" in each place.

    
    

13. Schedule 8.3, Technical Code B, clause 9 amended

    In Schedule 8.3, Technical Code B, clause 9, insert as subclause (2):

    (2) For the purpose of subclause (1), ancillary service agent does not include a person in respect of that person's provision of emergency reserve.            

    
    

    Part3

    Amendments to Part 12 of Electricity Industry Participation Code

    
    

14. Schedule 12.2, clause 4 amended

    In Schedule 12.2, clause 4(1),-

    1. after paragraph (a), insert:

       (ab) $35,305 per MWh for the purpose of emergency reserve; or

    2. in paragraph (b), after "value" insert", including for emergency reserve,".

       
       

       Part4

       Amendments to Part 13 of Electricity Industry Participation Code

       
       

15. Schedule 13.3AA, clause 3 amended

1. In Schedule 13.3AA, clause 3(1), after "6(2)(d)," insert "or the activation of emergency reserve in accordance with Schedule 8.3, Technical Code B, clause (6)(1)(ca) or 6(2)(ca),"

2. In Schedule 13.3AA, clause 3(2), replace "instructed the electrical disconnection of

   demand" with "made an instruction".

3. In Schedule 13.3AA, clause 3(4), delete "to electrically disconnect demand".

4. In Schedule 13.3AA, clause 3, after subclause (4), insert:

5. Subclauses (1) to (3) do not apply in relation to the activation of emergency reserve if the system operator undertakes a different process that ensures that the dispatch price is not reduced as a result of the activation of emergency reserve.

Made at Wellington on12 January 2026

Electricity Authority

Certified in order for signature:

aJNflf

Nichola Lambie Manager (Legal) Electricity Authority 19 December 2025

Rachael Brown Partner

Bell Gully

I q December 2025

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 (Code) comes into force on 1 March 2026.

The amendment amends Parts 1, 8, 12 and 13 of the Code to modify the framework for the provision of ancillary services to enable the procurement by the system operator of a new emergency reserve ancillary service. Emergency reserve is an ancillary service that provides access to generation capacity or load that can be used to minimise the electrical disconnection of demand in a grid emergency.

Electricity Industry Participation Code (Emergency Reserve) Amendment 2026

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