Market Brief - 3 April 2013

Market Brief

3 April 2013
Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.

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Contents
• Undesirable trading situation presentation to Energy Law Association
• Metering equipment provider auditor training
• Approved auditor forum
• Approved test house forum
• Call for nominations for Locational Price Risk Technical Group
• Additional information on Part 10 implementation published
• Transmission pricing methodology proposal cross submissions
• Generation project update
• Daylight saving ends
• Current consultations
• NZ electricity hedge contracts - 29 March 2013

Undesirable trading situation presentation to Energy Law Association

A presentation by the Authority’s Chief Executive, Carl Hansen, to the Energy Law Association on the March 2011 undesirable trading situation (UTS) and implications for efficient pricing has been published.

• The March 2011 UTS and implications for efficient pricing

Metering equipment provider auditor training

The Authority is holding a training session for metering equipment provider (MEP) auditors on Tuesday, 30 April 2013, 9am-5pm at the Abel Tasman Hotel, 169 Willis St, Te Aro, Wellington. The training is designed for those applying to be approved MEP auditors as well as MEP internal auditors. Numbers are limited and priority will be given firstly to those applying to be approved MEP auditors and secondly to MEP internal auditors.

Those wishing to attend should register by sending their names and company details to conference@ea.govt.nz with 'MEP auditor training 30 April 2013’ in the subject line.

Registrations close Wednesday, 24 April 2013.

• Agenda
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Approved auditor forum

The Authority is holding a forum for approved and prospective auditors on Monday, 29 April 2013, 9am-5pm at the Electricity Authority’s office, Level 7 ASB Bank Tower, 2 Hunter Street, Wellington. Numbers are limited and priority will be given to approved auditors and prospective MEP auditors.

Those wishing to attend should register by sending their names and company details to conference@ea.govt.nz with 'Approved auditor forum 29 April 2013’ in the subject line.

Registrations close Wednesday, 24 April 2013.

Approved test house forum

The Authority is holding a forum for approved test houses on Thursday, 11 April 2013. The forum will start at 9am and finish around 5pm and will be held at the Abel Tasman Hotel, 169 Willis St, Te Aro, Wellington. The forum will discuss the new Part 10, Electrical Safety Amendment Regulations 2012 and calculation of uncertainty.

Those wishing to attend should register by sending their names and company details to conference@ea.govt.nz with 'Approved test house forum attendee’ in the subject line. Registrations close Tuesday, 9 April 2013.

• Agenda

Call for nominations for Locational Price Risk Technical Group

The Authority is calling for nominations for up to eight members of the Locational Price Risk Technical Group (LPRTG).

The group was established to provide assistance with the Authority’s Locational Price Risk Project, including specialist and technical advice on the detailed design and operation of selected hedge mechanisms.

The Authority seeks nominations from people that have one or more of the following skills or experiences:

• electricity wholesale market trading
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• an appreciation of electricity price risk management, and in particular, locational price risk management.
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Nominations are being sought due to the expiry of existing members’ terms. Members will be appointed for a period of up to two years depending on the progress of the project.

Nominations should be emailed to info@ea.govt.nz, with ‘LPRTG nomination’ in the subject line, by 5pm Monday, 8 April 2013.

• Terms of Reference and nomination form
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Additional information on Part 10 implementation published

Additional information on Part 10 implementation including a newsletter, a list of metering equipment provider (MEP) identifiers and course notes for the MEP registry training held in February 2013 have been published.

• Additional information
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• Documents for participant user acceptance testing (UAT) of the Part 10 registry
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Transmission pricing methodology proposal cross submissions

The Authority received 16 cross submissions on its transmission pricing methodology review - issues and proposal.

• Cross submissions
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Generation project update

An update on generation projects in development and future proposals has been published.

• Generation update
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Daylight saving ends

The Authority reminds participants that daylight saving ends this Sunday, 7 April and participants should adjust their market processes accordingly.

Current consultations

Loss factor methodologies

The Authority has released a consultation paper on losses of electricity in distribution networks. It contains proposals to publish and monitor updated guidelines on the calculation and the use of loss factors, and to amend the definition of ‘losses’, the use of ‘losses’ and the use of related definitions in the Electricity Industry Participation Code 2010 (Code).
Started: 19/2/2013. Ending: 16/4/2013, 5pm.

• Loss Factor Methodologies
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Review of advisory group administrative arrangements

The Authority seeks feedback on a proposal to make a small number of minor amendments to the charter on advisory groups and the advisory group terms of reference. The proposed changes would apply to the Retail Advisory Group, the Wholesale Advisory Group and any future advisory groups that may be established.
Started: 5/3/2013. Ending: 16/4/2013, 5pm.

• Review of advisory group administrative arrangements
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Part 10 implementation: transitional Code amendments and minor operational matters

The Authority is consulting on proposing amendments to Part 11 and the new Part 10 of the Code to facilitate participants’ transition to new metering arrangements that are scheduled to come into effect on 6 June 2013. The proposed amendments are to ensure the transition will not cause participants to breach the Code. The consultation paper also includes proposed amendments on compliance with the current Part 10 and the new metering arrangements.
Started: 20/3/2013. Ending: 10/4/2013, 5pm.

• Proposed transitional and minor Code amendments to Parts 10, 11 and 15
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Dispatchable demand “go-live” date extension

The Electricity Industry Participation (Dispatchable Demand) Code Amendment 2011 was gazetted on 20 October 2011 with a start date of 27 June 2013. In November 2012 the Authority decided to review the design of dispatchable demand with the view of implementing a cheaper and simpler design. That review is nearing a conclusion and a decision is expected to be made in May 2013. Meanwhile the start date of 27 June 2013 will not be able to be met and will need to be extended.
Started: 8/3/2013. Ending: 17/4/2013, 5pm.

• Dispatchable demand “go-live” date extension
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Strategic directions for market development

The Authority is seeking feedback on proposed strategic directions for market development. The strategic directions are intended to further explain the Authority’s future focus for market development, and to provide more information about how the Authority might respond to changing circumstances, such as technology change.
Started: 12/3/2013. Ending: 23/4/2013, 5pm.

• Strategic directions for market development
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Review of undesirable trading situation provisions

The Authority has reviewed the undesirable trading situation (UTS) provisions in the Code in light of experience with the UTS which occurred on 26 March 2011. The review did not identify a need for any fundamental changes, but has highlighted a number of areas where the Code could be improved.
Started: 19/3/2013. Ending 1/5/2013, 5pm.

• Review of undesirable trading situation provisions
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Part 10 implementation: Proposed Guideline for Metering Equipment Provider Audits

Part 10 of the Code establishes the regulatory framework for metering in the New Zealand electricity industry. The Authority has approved a new Part 10 and associated amendments to Parts 1, 11 and 15 to develop a new set of metering arrangements that will be effective from 6 June 2013.This consultation seeks feedback on the Authority's draft ‘Guideline for Metering Equipment Provider Audits’.
Started: 25/3/2013. Ending: 7/5/2013, 5pm.

• Guideline for Metering Equipment Provider Audits
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Wholesale Market Information Disclosure Obligations (clause 13.2) Guideline

The Authority is seeking feedback on a proposed guideline to assist participants in applying proposed changes to clause 13.2 of the Code. The proposed changes to clause 13.2 were the subject of a consultation which closed on 21 December 2012.
Started: 26/3/2013. Ending: 7/5/2013, 5pm.

• Proposed clause 13.2A Guidelines
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NZ electricity hedge contracts - 29 March 2013

Information plays an important part in building market confidence and strength.

To assist interested parties in tracking market development, the Authority publishes NZ electricity hedge contracts as a standard section of its weekly Market Brief.

ENDS

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