Minor code amendments proposed; investigations into alleged breaches

The Electrical Authority has identified some necessary changes to current market settings and policy to protect consumers and support security of supply ahead of winter 2025.

The multiple discrete proposals to amend the Electricity Industry Participation Code 2010 (Code) are included in an omnibus consultation paper published today.

The proposals seek to:

• update the stress test regime to reduce risk to consumers and security of supply
• extend trader default provisions to all retailers to protect customers
• introduce a back-up means of calculating wholesale prices to improve market confidence.

The current stress test regime focuses on short-term risks. Extending the stress test horizon will support participants to address long-term risks and better align with the renewable shift and demand growth.

The proposed trader default changes will strengthen consumer protections when a retailer goes out of business. The alternative means to calculate prices provides the market with certainty around pricing in the event that schedule information cannot be published.

Feedback on the proposals are due by 5pm on Tuesday 4 March 2025.

Alleged Code breaches

We have commenced separate investigations into alleged breaches of the Code by South Pacific Energy Limited and Stack Power.

It is alleged that South Pacific Energy Limited did not meet its obligations relating to prudential requirements and completing payment of its settlement amounts by the due date and time under the Code.

Stack Power is alleged to have failed to submit its certified reconciliation participant audit by the deadline and continued to perform certified reconciliation functions without holding certification.

As New Zealand's electricity regulator, the Electrical Authority actively monitors the electricity market, enforces the rules and holds industry participants to account.

Details of both investigations can be found here.