Code changes support potential FTR market development

The Electricity Authority Te Mana Hiko is amending the Electricity Industry Participation Code 2010 (Code) so that all loss and constraint excess (LCE) is available to settle the Financial Transmission Rights (FTR) market.

Previously, the FTR manager had to calculate the proportion of LCE available to the market under Schedule 14.3 of the Code. The amendment removes this costly and complex process and improves the efficiency of the FTR market’s funding arrangements.

It also reduces the capital cost of adding more FTR hubs in the future, supporting market development and greater retail competition through improved management of locational price risk.

The amendment will come into effect on 1 October 2027.

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