Review of the application of loss and constraint excess to the settlement of Financial Transmission Rights
Consultation
We are seeking feedback on a proposal to remove the requirement for Transpower to calculate the amount of loss and constraint excess (LCE) to be allocated to the settlement of the FTR market and instead make all LCE available for the settlement of FTRs.
The proposal would amend clause 14.16 and revoke Schedule 14.3 of the Code. Any residual LCE and auction income not used in the settlement of the FTR market would continue to be allocated to Transpower to be rebated to transmission customers.
This proposal would support the efficient evolution of the FTR market, enabling it to better meet participants’ needs when managing locational price risk. This is particularly important as the wholesale market transitions to a renewables-dominant system.
We welcome your feedback by 5pm, 22 July 2026.
Make a submission
Our preference is to receive submissions in a format shown in Appendix C as a searchable PDF. Submissions should be emailed to wholesaleconsultation@ea.govt.nz with 'Consultation - Review of the application of LCE to the settlement of FTRs' in the subject line by 5pm, 22 July 2026.
If you cannot send your submission electronically, please email wholesaleconsultation@ea.govt.nz or call 04 460 8860 to discuss alternative arrangements.
We will publish all submissions. If you consider we should not publish any part of your submission, please:
- indicate which part should not be published and explain why, and
- provide a version of your submission the Authority can publish (if we agree not to publish your full submission).
All submissions, including any parts the Authority does not publish, can be requested under the Official Information Act 1982.