Code exemption granted to Energy Clearing House Ltd

The Electricity Authority Te Mana Hiko has granted Energy Clearing House Ltd an exemption from a new clause in the Electricity Industry Participation Code 2010 to expedite the settlement of prices from 9 August 2021.

An amendment to the Code that took effect on 1 March 2024 introduced a new clause (14.34A) that requires the clearing manager to pay participants every six months the interest that has accumulated in the clearing manager’s accounts.

Previously, there was no provision for distributing residual funds in the Code.

Energy Clearing House Ltd (as the clearing manager) applied for an exemption from compliance with the obligation to make payment of residual funds by 4pm on 28 March so that it can prioritise the settlement of trading periods 37-42 on 9 August 2021.

Granting the exemption requested meets the requirements in section 11(2) of the Electricity Industry Act 2010.

On 29 February, the Authority directed the clearing manager to finalise and settle prices for trading periods 37-42 on 9 August 2021 which had been held interim pending the outcome of appeals to the High Court.

A Gazette notice provides more details on the exemption. The exemption expires at 4pm on 31 July 2024 or when the first payment is made (whichever is the earliest) and requires the first payment of residual funds no later than 22 July 2024.