Monitoring, compliance and enforcement
Review of spot market trading conduct provisions
Review of the trading conduct provisions by the Electricity Authority and Market Development Advisory Group.
Following a comprehensive review involving multiple stakeholder consultations and expert panels to test options, we decided to introduce a new trading conduct rule (effective from 20 June 2021).
The new rule replaces the high standard of trading conduct provisions (clauses 13.5A and 13.5B and the definition of ‘pivotal’) in the Electricity Industry Participation Code 2010.
Under the new rule, generators and ancillary service agents are required to ensure any offers they make in the wholesale electricity spot market are consistent with offers they would have made in a market where no party could exercise significant market power.
9 February - 23 March 2021Consultation —Proposal to replace the high standard of trading conduct provisionsView consultation
15 December 2020Report —
MDAG's final recommendations on trading conduct provisions
22 October - 5 November 2020Consultation —Supplementary consultation: MDAG's review of trading conduct provisionsView consultation
25 February - 27 May 2020Consultation —High standard of trading conduct provisions: MDAG reviewView consultation
30 July 2019Event —
MDAG stakeholder briefing on its trading conduct provisions review
The trading conduct provisions came into effect in June 2014 and have been tested by various events in subsequent years.
In November 2017, we asked the Market Development Advisory Group (MDAG) to investigate the trading conduct provisions in light of those events and provide recommendations to ensure the provisions are effective in promoting outcomes consistent with workable competition.
There are a broad range of trading conduct issues the provisions could cover. MDAG focused on trading conduct when parties are pivotal ie, they do not face competition, usually in the short term, for some portion of their supply.
Other projects in Monitoring, compliance and enforcementView all projects
Review of wholesale market competition
A review into competition in the wholesale electricity market after sustained high electricity prices.
Under-frequency event determinations
Determining the causers of under-frequency events to allocate event charges.