Market announcement – FPVV hedge settlement agreements

As of 1 January 2026, the clearing manager is processing fixed price variable volume (FPVV) hedge settlement agreements. This new hedge settlement agreement reflects the growing use of FPVV products in the market and provides the ability of offsetting wholesale risk against prudential and settlement obligations via the clearing manager.

Key features of fixed price variable volume hedge settlement agreements

• FPVV hedges allow parties to fix a price where the quantity is a percentage of the consumption or generation.
• The clearing manager will accept FPVV hedges using a new Hedge Settlement Agreement form, Form 4 found in Schedule 14.4 of the Electricity Industry Participation Code.

Please note: no washups

FPVV hedges will not be subject to washups by the clearing manager per clause 14.36. Settlement will occur once, based on the initial billing period volumes. Any subsequent adjustments to volumes (washups) must be resolved bilaterally between parties outside of the clearing manager’s processes.

Forms, templates, and bulk upload requirements

For contracts with more than 5 contract headers, participants must use the bulk upload template.

You can find both the Fixed Price Variable Volume Form (Form 4) and the Bulk load Template - FPVV under the Hedge Settlement Agreement (HSA) Section on this NZX webpage: NZX, New Zealand's Exchange – NZX Energy, Clearing Manager

Here are some guidelines for completing the bulk upload template:

• The first row (highlighted in red) provides guidance on acceptable inputs.
• PERCENTAGE_TOTAL_VOL: Enter a value between 0-100 (do not use the % symbol). This is the percentage of the variable quantity to be hedged.
• ORG_CODE: Enter the four-letter participant code of the owner of the variable volume.
• BILL_TYPE: Enter either G for Generator (Generation) or P for Purchaser (Consumption).
• MAX_VAR_QUANTITY: Enter the maximum variable quantity in MWh/TP or it can be left empty. This is the maximum amount in MWh/TP that the variable quantity must not exceed.

When submitting, please delete the first row (red), and save the file as a CSV. Please submit this along with the FPVV Form 4 Contract to the clearing manager.

For further details, including the FPVV HSA template, please refer to Schedule 14.4, Form 4 of the Code or contact the clearing manager at cm@nzx.com