Prudential security arrangements Code amendment

The Electricity Authority Te Mana Hiko is seeking feedback on two proposed Code amendments to improve the efficiency of prudential security arrangements for retailers, without increasing risk to the wider market.

We propose to:

• reduce the post default exit period by four days for retailers with 1,000 ICPs or fewer
• reallocate residual funds to purchasers in proportion to their percentage of total purchase volume.

These adjustments are intended to help lower barriers to growth and support a more diverse and vibrant retail electricity market. This should help deliver providing consumers with greater choice and value for consumers.

The Authority intends that future planned improvements to our trader default processes will benefit a wider range of retailers.