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26 May 2020
Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.

Contents

Market making performance during COVID-19 Alert Levels 3 and 4
The Australian Securities Exchange’s (ASX) market making scheme allows market makers up to five no-questions-asked exemptions each month. 

The Authority issued guidance to ASX and market makers regarding flexibility for market makers under COVID-19 Alert Levels 3 and 4. Contact, Genesis, and Mercury used the extra flexibility, but Meridian did not.

The Authority appreciates the commitment of market makers to continue to provide services during the disruptive transition to Alert Levels 3 and 4. In particular, Meridian provided regular services throughout the whole period and Genesis used a consistent best efforts approach when it was disrupted. 

Now that New Zealand is in COVID-19 Alert Level 2 the Authority's guidance does not apply.

The additional COVID-19 flexibility supported market making at the end of the highest traded month ever – March 2020. 

The Authority is currently reviewing enduring market making arrangements.
Read more

COVID-19 and Alert Level effects on disconnections and debt

In response to COVID-19 and the lockdown the Authority requested debt and disconnection information from retailers on 9 April 2020 under section 46(2)(a) of the Electricity Industry Act 2010.

The Authority requested both qualitative and quantitative information to understand the impact of COVID-19 and the Alert Level system on competition, efficiency and reliability of the electricity industry and what that means for consumers. 

To protect the confidentiality and commercial sensitivity of the information provided by retailers, our findings report on the combined total of all retailers. Nonetheless, there are some observations we can draw on at the aggregate level which you can read about here.

Appointment of MDAG and IPAG Chairs
Tony Baldwin and John Hancock have been re-appointed as Chairs of the Market Development Advisory Group and the Innovation and Participation Advisory Group  respectively. John has been reappointed for three years. Tony has been reappointed for one year, reflecting his preference for a shorter term.

Real-time pricing project update
We are changing the way spot prices for electricity are calculated and published so everything will be done in real time. The shift will deliver more accurate and certain wholesale pricing.

Design work has continued since you last heard from us, and we are starting to plan our engagement activities over the coming year.

Considering the COVID-19 pandemic and subsequent government restrictions, we are revising our workshops into shorter, targeted webinars. 

You can find more information about the webinars on our website.

Additional consumer choice of electricity services - V2 ICP connection data API released
As part of our initiatives to enhance additional consumer choice of electricity services and customer access to their data (ACCES project) we have released version 2 of the ICP connection data API. This release follows an external review of the API which found no material issues. 

The My Meter webpage has also been updated to provide access to the new registry fields released through the API as part of the ACCES project.
 

Electricity Industry Participation Code Amendment (COVID-19 Deferred Payment of Distribution Charges) 2020
On 20 May 2020 the Electricity Industry Participation Code Amendment (COVID-19 Deferred Payment of Distribution Charges) 2020, came into force. The amendment relates to Part 12A of the Code.
Read more

Reminder: Compliance investigation for participants to join
The Authority has commenced an investigation into alleged breaches of the Code by Genesis Energy Limited.

Flick Energy Limited alleged that Genesis attempted to winback a customer during the switch protected period. On investigating the breach alleged by Flick, Genesis reported further instances where it similarly breached.

Electric Kiwi Limited also alleged similar breaches by Genesis in addition to those instances reported by Genesis.

Participants who consider they are affected by the matter being investigated may join as a party to the investigation. To join the investigation, participants should notify the investigator no later than 28 May 2020. The investigator’s contact details are in the notices of investigation on our website. 

Read notice of investigation

Current consultations

Cross submissions on MDAG's High Standard of Trading Conduct discussion paper

Ending: 27/05/2020 5pm
Read more

Hedge Market Enhancements Market Making consultation paper

Ending: 16/06/2020 5pm
Read more
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Tel: + 64 4 460 8860   Email: info@ea.govt.nz
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