Code amendment omnibus #5 decision

The Electricity Authority Te Mana Hiko is making three discrete amendments to the Electricity Industry Participation Code 2010 to:

• Update the stress test regime to reduce risk to consumers and security of supply.
• Extend trader default provisions to all retailers to protect all consumers.
• Introduce a back-up means of calculating wholesale prices to improve market confidence.

The changes will protect consumers and support security of supply ahead of winter 2025.

The existing stress test regime focused on short-term risk and extending the stress test horizon will support participants focus on managing longer-term risk management.

The stress test regime is not a supervisory regime, and the Authority does not have a view on appropriate risk management strategies for different participants. The goal of the stress test regime is to ensure that all participants are taking informed decisions about their price risks.

The trader default changes will strengthen consumer protections when a retailer goes out of business.

The back-up pricing arrangements provides the market with certainty around pricing in the event that schedule information cannot be published.

The changes to the stress test regime and trader default provisions take effect from 15 May 2025 and the back-up wholesale price calculation method comes into effect on 1 July 2025.

We have also updated the stress test guidance notice published under clause 13.236D of the Code that sets out the base case, stress test, and method for calculating actual and target cover ratio. The updated notice is effective for the quarter beginning 1 July 2025.

We would like to thank all submitters who provided feedback on the proposed amendments. We received eight submissions.

Read our decision paper to find out the reasons for our decisions, our responses to submissions and the final Code and stress test guidance notice drafting.

About Code amendment omnibus #5