General news
Financial transmission rights manager contract awarded
- Retail
- Wholesale
After undertaking a two-stage procurement process, the Electricity Authority Te Mana Hiko has awarded a contract for the management of financial transmission rights (FTR) to Transpower New Zealand Limited’s Energy Market Service (EMS) division.
EMS commenced a three-year contract on 1 July 2024 to act as the FTR manager. EMS was the incumbent supplier for the FTR manager role, and the Authority is looking forward to building on its previous delivery of this essential service to the market.
FTRs are financial hedges that help energy purchasers and generators to manage price volatility between different locations on a transmission grid. The FTR market currently operates alongside the New Zealand electricity hedge market.
The FTR manager is responsible for:
- creating inter-island and intra-island FTRs
- allocating FTRs to industry participants via regular auctions
- managing the FTR register, in which all FTR holdings are publicly listed
- registering parties who wish to participate in FTR auctions
- undertaking other activities associated with operating, promoting and developing the FTR market.
Related News
Conclusion of the market making review – further findings published
Following consideration of independent analysis commissioned by the Electricity Authority Te Mana Hiko, we have decided not to consider any further changes to …
Authority determines two Hāwera grid exit points as non-conforming
The Electricity Authority Te Mana Hiko has reclassified two grid exit points at Hāwera, from conforming to non-conforming.
Preparing for the next commercial market making contract
The Electricity Authority Te Mana Hiko is preparing for the next commercial market making contract, which will start on 1 March 2027.