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

Contents

Resetting the Authority's strategy – draft paper released

We are resetting the Electricity Authority’s strategy to respond to the ongoing and rapid changes in the electricity sector. 

There have been significant changes in the external environment since we developed and published Strategic Directions for Market Development in 2013 and it’s time to reset the strategy and focus our effort on those areas important to us and our stakeholders.

As part of this process, we have published a paper that documents the draft emerging themes and encourages feedback on progress to date.  

The draft has been developed in consultation with staff, the Board and many of our key stakeholders including direct engagement with consumers. 

The working draft is on our website and we welcome your comments. Please send your feedback to strategy@ea.govt.nz by 5pm on Monday, 24 February 2020.

We are also holding three workshops to gather feedback and input from stakeholders on the emerging themes: 
  • Christchurch, Monday, 17 February, 2pm-4pm, Rydges Latimer Hotel
  • Wellington, Tuesday, 18 February, 10am-12pm, Te Wharewaka o Poneke
  • Auckland, Friday, 21 February, 10am-12pm, Rydges Hotel CBD
If you are interested in attending one of the workshops, please email us at strategy@ea.govt.nz
Read more

TPM: Supplementary consultation and further engagement

Following consideration of stakeholder submissions, the Authority has published a supplementary consultation paper seeking further feedback on proposals about:
  • recovery profile for future benefit-based charges
  • adjusting benefit-based charges when a plant closes
  • regular updates of the residual charge allocation
  • prudent discount for charges above standalone cost.
The paper is on our website here. Submissions close at 5pm on Tuesday, 3 March 2020.

The Authority intends to publish further papers in early March. The papers will cover the Authority’s consideration of submissions on the cost benefit analysis (CBA), including updated CBA code and tables, and peak charging.

The Authority will present on the CBA in Wellington on Thursday, 26 March 2020. Stakeholders will have an opportunity to ask questions and discuss after the presentation.
Read more

Submissions published – 2020/21 Levy-funded appropriations

Thanks to everyone who submitted on our ‘2020/21 Levy-funded appropriations’ consultation. Submissions have now been published.
Read submissions

Reconciled annual levy rates for year ending 30 June 2019

We have reconciled the levy rates for the financial year ending 30 June 2019, in accordance with regulation 11 of the Electricity Industry (Levy of Industry Participants) Regulations 2010. 

The reconciled levy rates will be gazetted and available on our website on Friday, 14 February

New market making activity report available on EMI

We have released a new report on our electricity market information (EMI) website, as part of our ongoing effort to improve the monitoring of hedge market performance. The new report gives an overview on market making activity in the market for New Zealand electricity futures.

The report summarises how many market makers met the agreed criteria in each trading session. Users of the report can drill down to individual market makers and individual trading sessions to explore further.

The voluntary market making agreements entered into with ASX allow exemptions from meeting the criteria in all trading sessions. As of 3 February 2020, those agreements are now underpinned by Code obligations
View report

vSPD training workshop

We are planning to host a training workshop in Wellington on the use of vSPD. While we will describe vSPD and the online version, the focus of the workshop will be on how to use the standalone version of vSPD to undertake counterfactual experiments.

Please note, the standalone version of vSPD requires users to obtain a GAMS license (participants will not need a license to operate the online version or to attend the workshop).

Please email phil.bishop@ea.govt.nz by Monday, 17 February to register your interest. We will advise you by email of the venue, date and time of the workshop once we know numbers.

The workshop will be approximately 90 minutes and will likely be held before the end of February 2020.

IPAG meeting papers published

We have published the papers from the Innovation and Participation Advisory Group (IPAG) meeting held on Wednesday, 4 December 2019 at the Mercury offices in Auckland.
Read papers

Reminder: Open Networks – Standards forum – March 2020

The Authority is hosting a second Open Networks forum in Wellington on Thursday, 19 March 2020 focussing on standards. This is a follow up to the first forum held on 19 November 2019 and will include: 
  • updates and discussions on standards development in the industry, including presentations from Westpower and WEL Networks 
  • discussion on standards that were suggested at the first forum
  • pilot, trial and investigation networking session.
Please register if you wish to attend this event. 
Read more and register

Feedback on prudential methodology change

We have asked NZX, the clearing manager, to review the way prudential security is calculated, specifically the exit period calculation, to ensure it remains fit for purpose. 

The changes are targeted at making the exit period prices more adaptable/responsive to current market conditions, alleviating surplus/deficit security that may be present during this period. To do this, the changes consider and evenly weight the following:
  • the most recent interim/final prices for both business day, and non-business day
  • a 21-day rolling average of the most recent interim/final prices, categorised by business day and non-business day
  • the current exit price methodology.
The revised Settlement and Prudential Security Methodologies document and details on how to provide feedback are available here. The majority of changes are on page 14 of the document. 

Please respond to NZX by midday Wednesday, 19 February 2020 with any feedback or comments you may have.

Current consultation

Raising consumer awareness of Utilities Disputes and Powerswitch services

Ending: 030/03/2020 5pm

Read more
Level 7, Harbour Tower, 2 Hunter Street, PO Box 10041, Wellington 6143, New Zealand
Tel: + 64 4 460 8860   Email: info@ea.govt.nz
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