Improving hedge disclosure obligation requirements
Consultation
This consultation sought industry feedback on issues and high-level options to improve the hedge disclosure obligation (HDO) requirements. The HDO requirements facilitate the market in over-the-counter risk management contracts. They require participants who have entered certain risk management contracts to disclose specified information. The HDO requirements were introduced in 2009 under the Authority’s predecessor, the Electricity Commission.
A well-functioning contracts market enables participants to effectively hedge against spot price volatility and participants are increasingly relying on the contracts market to manage their risk.
However, the current HDO requirements are not fit for purpose to support effective risk management. The contracts market has materially changed over the past few years and a growing number of risk management contracts are not captured by the HDO requirements. A further concern is that the information specified in the Code for each contract type is insufficient to enable effective risk management.
We would like to thank all those who provided input on the questions listed in our consultation paper. This feedback will be used to develop the next stage of preferred options for future consultation.
Submissions
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Contact Energy7 pages
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emhTrade Bold Trading10 pages
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Energy Link5 pages
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Flick Electric6 pages
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Helios Energy4 pages
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Independent Retailers5 pages
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Major Electricity Users' Group4 pages
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Manawa Energy3 pages
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Mercury Energy4 pages
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Meridian Energy8 pages
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Nova Energy5 pages
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Octopus Energy4 pages
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Transpower1 page