UTS 21 August 2004
We completed an investigation into an undesirable trading situation (UTS) claim and concluded no UTS occurred.
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UTS claim
Genesis Energy made a UTS claim in connection with provisional price outcomes for trading period 22 on 21 August 2004.
Our investigation
On 22 August 2004, the pricing manager gave notice of a provisional pricing situation affecting trading period 22 on the previous day, 21 August 2004.
The pricing manager discovered very large (over $10,000) and very low (under negative $1,300) prices for this trading period at several central North Island and lower North Island nodes.
These provisional prices remained on 23 August 2004 and Genesis Energy lodged a UTS claim.
Genesis Energy’s claim asked for the publication of final prices to be delayed and requested a determination on whether a potential UTS existed.
During our investigation, the system operator confirmed that normal processes were used regarding the operation of the Scheduling Pricing and Dispatch model (SPD) and the inputs to SPD during the trading period.
High prices during this period came from the concurrent existence of three significant constraints affecting the HVDC link and the Taranaki-Bunnythorpe and Arapuni-Hangatiki circuits.
Our decision
We considered the claim and found that the circumstances did not satisfy the test for an undesirable trading situation.