Review of the application of loss and constraint excess to the settlement of Financial Transmission Rights
Consultation
This consultation sought 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 change 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 received six submissions - thanks for your feedback.
Submissions
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Electric Kiwi3 pages
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Haast2 pages
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Mercury2 pages
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Meridian5 pages
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Pacific Energy Trading3 pages
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Transpower2 pages