Electricity hedge market disclosure system
Part 13 of the Code sets out the requirements on industry participants to disclose risk management contract information.
Participants must disclose this information using the electricity hedge contracts website.
The disclosure of hedge contract information system allows interested parties to view and compare hedge contract details and produce historic contract curves to better assess the competitiveness of the hedge contract market. Parties in the process of entering into a hedge contract can view details of historic contracts which may assist them when negotiating their own contracts.
Treatment of commercially sensitive information
For the purposes of disclosing hedges, New Zealand is divided into five zones.
To make disclosures anonymous and eliminate any commercial sensitivity around an individual hedge price, each individual hedge price is adjusted with a location factor and then entered into the website as if it was assigned to a representative node in each zone.
The location-adjusted pricing of each hedge is publicly available on the website, but not the names of the parties to the hedge. The actual price for each individual hedge is not entered into the website.
Annual certificate requirements
Industry participants who are required to disclose information must also fill out an annual certificate, available on the electricity hedge contracts website, to certify they have disclosed the information accurately.