Draft guidance on distributor involvement in the flexibility services market

The Electricity Authority Te Mana Hiko is seeking feedback on its draft guidance on distributor involvement in the evolving flexibility services market.

Flexibility services draw on consumer flexibility and distributed energy resources – such as home battery systems, controllable EV chargers and water heaters, or solar generation – to provide support services to distribution networks, the transmission grid and energy markets.

These types of services will play a vital role in keeping costs down as New Zealand increasingly electrifies, as they enable more electricity to be delivered using the existing distribution network rather than requiring expensive network upgrades.

We recognise distribution businesses will play an important part in the flexibility services market. But we also recognise that their natural monopoly advantages in their core distribution business may be leveraged into the flexibility services market, affecting other businesses wanting to provide flexibility services.

The Guidance on distributor involvement in the flexibility services market aims to promote a level playing field for all flexibility services providers wanting to access the market.

We’re now keen to hear from all interested parties on our draft guidance and consider where it can be improved.

We are holding an online workshop on Tuesday 25 June, 11am-1pm and will be looking for attendees to provide their input and advice on the coverage, practicality and workability of this draft guidance, as well as insights to any unintended costs or impacts, to support the development of a competitive market. Register for this workshop by 12pm, Monday 24 June

We also welcome written feedback to distribution.feedback@ea.govt.nz.

We will consider all feedback to finalise the guidance and ensure it is workable to all those wanting to provide flexibility services, and makes a difference to flexibility services competition.