We consulted on a new trading conduct rule to replace clauses 13.5A and 13.5B and the definition of “pivotal” in Part 1 of the Electricity Industry Participation Code 2010.
The new rule is intended to provide more clarity in the interpretation and enforcement of the trading conduct provisions. Under the proposed rule, generators and ancillary service agents would be 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.
We anticipate this change will promote more efficient prices when competition is weak and improve confidence in the wholesale market for the long-term benefit of consumers.
This consultation acknowledges and builds on the work completed by the Market Development Advisory Group. Thanks to all who made a submission. Our Board made a decision on 1 June.