Changes approved to systems operation document

The Electricity Authority Te Mana Hiko is making sure the electricity system has security of supply under a number of different scenarios, so consumers can expect a reliable, secure electricity system that is responsive to shocks.

This means making sure the electricity system is prepared so it can respond to rare events in a way that best meets consumer expectations.

As part of this preparation for eventualities, the Authority has approved a number of changes to an existing plan that manages the worst-case scenario – where an electricity supply shortage would be declared and how this would be managed. These changes were proposed by Transpower, as the contracted system operator.

This plan, called the System Operator Rolling Outage Plan, is one of the key security of supply planning and policy documents. It sets out how the system operator, alongside distributors and large industrial consumers, would conduct rolling outages (ie, temporary planned outages of a consumer’s supply) if a such a shock were to occur. Rolling outages are conducted as an emergency response to conserve fuel and avoid further unplanned outages. Rolling outages have not been needed since the electricity market was established.

The review of the plan and the proposed amendments were in train prior to the current issues around the shortage of supply and the volatility in the wholesale electricity market. You can find out more about our work to investigate ongoing electricity market volatility on our website.

The amendments are intended to provide further certainty about how the System Operator Rolling Outage Plan works in practice, and enhance coordination between distributors, directly connected participants, and the system operator. Clear communication and a well-planned response are key to ensuring that the disruption to consumer supply is minimised through any system shock.

Under the Electricity Industry Participation Code, the Electricity Authority must approve amendments to a system operation document.

The amendment has been Gazetted and the amendment takes effect from 1 September 2024.