Seeking feedback to improve hedge disclosure obligations

In July 2023, the Electricity Authority Te Mana Hiko published a consultation paper which sought feedback on issues with the hedge disclosure obligations in the Electricity Industry Participation Code 2010 (Code). It suggested high-level options to improve these obligations and the hedge disclosure system.

Our July 2023 consultation paper indicated that the hedge disclosure requirements provide limited transparency, especially for newer and more sophisticated contract types, and do not provide enough information on contract shapes and prices. The limited information disclosed constrains our ability to effectively evaluate the competitiveness and efficient operation of the market.

After considering industry feedback and conducting further analysis, including on international developments, we propose amendments to the Code to broaden the scope of information collected and published on risk management contracts. The proposed changes aim to ensure hedge disclosure obligations remain fit for purpose to support effective risk management and market performance during the transition to 100% renewable generation.

We welcome feedback on our proposed Code amendments and invite submissions on a list of questions in Appendix B of our consultation paper to WholesaleConsultation@ea.govt.nz by 5pm on 6 February 2024.

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