1B: Regulating the standardised super-peak hedge contract

Upcoming Open Closed Decision

View submissions Submissions closed 30 September 2025

OTC platform selection

Following this consultation, the Electricity Authority worked with the Industry Selection Panel to finalise the OTC trading platform and provider requirements.

On behalf of the Industry Selection Panel, we are inviting proposals for an over-the-counter trading platform to support voluntary or mandatory market-making of the standardised super-peak contract.

If you are interested, please read the following documents and submit your proposal, including all attachments and supporting materials, to market.making@ea.govt.nz by 5pm 16 March 2026.

Consultation

This consultation sought feedback on our proposed approach to regulating the standardised super-peak flexibility product, an electricity hedge contract for morning and evening trading periods (the super-peak product). Thanks to all who provided a submission.

The super-peak product provides buyers with protection against high prices during periods of peak demand in the morning and evening. It was co-designed by industry experts as an initiative of the Energy Competition Task Force, to improve competition in the market for shaped hedges. The product has traded on a voluntary basis since January 2025, through a fortnightly brokered event on the over-the-counter (OTC) market.

Introduction of the super-peak product, supported by voluntary trading, has improved the availability and pricing of super-peak hedges on the OTC market. While these improvements are encouraging, the market is not yet sufficiently deep or liquid.

If liquidity does not improve to a sufficient level, the Authority intends to consider regulating super-peak product trading to ensure a reliable supply of contracts at efficient prices.

We have considered two options for regulating super-peak product trading on an enduring basis. These options are:

market making on the Australian Securities Exchange (ASX)
market making on the OTC market.

Market making OTC is the Authority’s preferred regulatory option, if required, to improve super-peak hedge contract access and price discovery.

The paper also sets out the Authority’s plan for urgent action if there is a sudden material reduction in the supply of shaped hedges. If urgent action is required, our preferred approach is a temporary obligation on gentailers to offer and sell a minimum volume of hedges OTC to maintain the market while an enduring solution is considered.