Authority approves System Operator’s changes to the Ancillary Services Procurement Plan

The Electricity Authority Te Mana Hiko has approved changes proposed by the System Operator to the Ancillary Service Procurement Plan.

This set of minor changes aims to:

• better align the procurement plan with:
  • changes to the Electricity Industry Participation Code (Code),
  • existing ancillary service contract provisions, and
  • existing ancillary service procurement practices
• improve drafting consistency across the five ancillary services, and
• clarify technical requirements for new technologies

These changes will benefit consumers by reducing the likelihood of ancillary service provision shortages and increase the pool of potential ancillary service providers. This means a more resilient electricity system and better outcomes for consumers.

When will this happen?

The changes will come into effect on Thursday 7 August 2025.

What will change?

The updated plan includes:

• clarifications of existing requirements
• additions to better align the plan to current practices and Code amendments
• additions to clarify requirements for new technologies, such as battery energy storage systems

How were the changes made?

Transpower, as the System Operator, must review the procurement plan every two years.

The System Operator publicly consulted on proposed changes in April 2025. After considering submissions, it modified some of the changes and deferred the most controversial proposals. It then submitted the updated procurement plan to the Authority for approval in June.

The Authority agrees with the System Operator’s assessment that most of the final changes are minor, non-controversial and are not expected to increase costs.

The amended procurement plan will remain in force until the System Operator conducts its next periodic review.

What is the procurement plan?

The procurement plan sets out the mechanisms the System Operator uses to procure ancillary services, the technical requirements for provision, and key contractual terms applying to each service. It is incorporated by reference into the Electricity Industry Participation Code 2010.

Want to learn more?

See the system operation documents page for more information.