Improving visibility of competition in the OTC contract market
Consultation
Thanks to all who engaged with this consultation. We are considering submissions and will provide an update when we have made a decision.
This consultation sought feedback on a proposal to require all retailers (including gentailers) and large industrials (who buy electricity from the clearing manager) to regularly provide the Electricity Authority with their over-the-counter requests for buying contracts (bids) and responses to those requests (offers).
This is intended to improve the transparency of, and competition in, the over-the-counter hedge market to drive greater retail competition, aligned with the findings from the Risk Management Review and recommendations from the Market Development Advisory Group.
Improved retail competition increases downward pressure on electricity prices and provides more choice for consumers.
The proposal was to use clause 2.16 of the Electricity Industry Participation Code 2010 to regularly collect information on bids and offers on an ongoing basis. We were previously collecting most of this information via a section 46 notice, which had limited duration (only collected information until the end of 2024).
Our current view is the benefits of increased transparency in the contracts market outweigh the costs.
Consultation paper
Submissions
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2 degrees4 pages
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Daiken Southland4 pages
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Electric Kiwi3 pages
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ERANZ3 pages
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Fonterra4 pages
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Genesis6 pages
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Mercury5 pages
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Meridian8 pages
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MEUG5 pages
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Nova Energy6 pages
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New Zealand Steel6 pages
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Octopus Energy6 pages