Operational efficiencies

Initiatives to increase the efficiency of electricity market operations. In particular, we look at refining processes set out in the Code and initiatives to improve market systems. This programme primarily aligns with our ensure fit-for-purpose market services strategy and also contributes to other strategies.

Current projects

  • System Operator Policy Statements and Procurement Plans

    We regularly consult on the System Operator's proposed changes to the Policy Statement and Procurement Plans

    Latest Activity: 2 Oct – 9 Nov 2018 Consultation on amendments to the policy statement

  • 2017 operational review of Electricity Information Exchange Protocols (EIEPs)

    The Authority is undertaking an operational review of Electricity Information Exchange Protocols.

    Latest Activity: 2 Oct 2018 Operational review of EIEP's

  • Code Review Programme

    The Authority proposes a Code Review Programme (CRP), which will result in an annual Code amendment.

    Latest Activity: 2 Oct 2018 Code Review Programme 2018 - Decision and reasons paper

  • Operational review of metering and related registry processes

    The Electricity Authority (Authority) is reviewing Part 10 to ensure it is operationally efficient and to correct errors and omissions that have been collected since its original implementation over three years ago.

    Latest Activity: 20 Sep 2018 Update

  • Review of switching process

    The Authority is undertaking an operational review of the consumer and installation control point (ICP) identifier switching process between traders. The Electricity Industry Participation Code 2010 sets out the process where an ICP identifier is transfer

    Latest Activity: 20 Sep 2018 Update

  • Dispatch service enhancement

    The dispatch service enhancement project (previously the Electronic Dispatch Facility Phase III project) will deliver improved flexibility and resilience of the system used to communicate and acknowledge dispatch instructions.

    Latest Activity: 11 Sep 2018 Industry workshop: Dispatch Service Enhancements - 30 Nov 2018

  • Market enhancement omnibus

    From time to time there will be minor enhancements that are needed to improve efficiency or to ensure the integrity of the Code.

    Latest Activity: 11 Sep 2018 Market enhancement omnibus forum

  • Proposed minor amendments to ICP status reasons and register content codes

    The Authority is consulting on minor changes to ICP status reasons and register content codes.

    Latest Activity: 4 – 21 Jul 2017 Proposed minor amendments to ICP status reasons and register content codes

  • Review of scarcity pricing

    Scarcity pricing refers to arrangements to modify prices in the wholesale electricity market (spot market) when the system operator reduces demand through administrative action.

    Latest Activity: Apr 2016 Background

  • Domestic contracting arrangements

    The Authority is progressing a significant body of work that had been undertaken to date by the Electricity Commission and other industry groups regarding electricity retail contracting arrangements.

    Latest Activity: Apr – Dec 2013 Retail Advisory Group review of domestic contracting arrangements

  • Improved market modeling of losses

    The purpose of this project is to standardise the approach to the calculation and maintenance of technical and non-technical loss factors in distribution networks.

    Latest Activity: 19 Feb – 16 Apr 2013 Loss Factor Methodologies

Completed projects

Proposal to permit ATHs to amend certification reports Outcome: Completed:
Under the Code, metering equipment providers (MEPs) are responsible for providing metering installations and for ensuring they comply with various requirements set out in the Code. MEPs contract ATHs to test and certify the components of, and the whole of, a metering installation, to ensure the metering installation complies with the Code. We have made the amendment to clause 8A of Schedule 10.7 of the Code permanent. 4 Sep 2018
Proposed guideline for connection and electrical connection Outcome: Completed:
The Authority is seeking feedback on a proposed guideline for connecting and electrically connecting points of connection. We have completed our review and amended the Connection and electrical connection guidelines. 26 Jun 2018
2017 operational review of register content codes Outcome: Completed:
The Authority is conducting an operational review of register content codes We have completed our operational review of the register content codes and made several changes. 20 Mar 2018
Review of participant audit regime Outcome: Completed:
The Electricity Authority (Authority) is seeking to review the participant audit regime (audit regime) to ensure its purpose is well defined and identify changes to the regime that will improve participant’s compliance with the Electricity Industry Participation Code 2010 (Code) and reduce the cost and effort associated with participant audits. We have completed our review of the participant audit regime and made several improvements. 16 May 2017
Registry manager service provider tender Outcome: Completed:
The Authority is tendering for the service provider role of: registry manager. Authority appoints Jade Software Corporation (NZ) Limited as market operation registry manager. 6 Mar 2017
Authority changes to the 2016 FTR Allocation Plan Outcome: Completed:
The Authority is consulting on two proposed changes to the 2016 FTR allocation plan, submitted by the FTR manager to the Authority on 6 May 2016.

Changes were made to the FTR Allocation Plan. 15 Nov 2016
Operational enhancements to dispatchable demand Outcome: Completed:
This page will cover any enhancements or improvements that may be made to the dispatchable demand regime from time to time. This project has been completed. 4 Oct 2016
Operational changes to the Registry functional specifications Outcome: Completed:
The Authority occasionally needs to consult or otherwise engage with participants over changes to the Registry functional specifications. We consulted on three separate proposals for amendments to the registry functional specification between December 2013 and June 2016. Each consultation resulted in changes to the registry functional specification. 8 Aug 2016
Market operation service provider tender Outcome: Completed:
The Authority was tendering for the service provider roles of: pricing manager, reconciliation manager, wholesale information trading system (WITS) provider, clearing manager. Following the MOSP tender process NZX was selected as the successful supplier for the following four roles: Clearing manager; Reconciliation manager; Pricing manager; and Wholesale information and trading system (WITS) manager. 30 Apr 2016
System operator and market services review Outcome: Completed:
The Authority has as a key strategy to ensure fit-for-purpose market services support the efficient and effective operation of the wholesale and retail electricity markets.

In 2015/16 we have undertaken to improve the arrangements for the service provision by the system operator and other market operations service providers. Further adjustments to the arrangements with market operation service providers are anticipated in 2016/17.
We have amended the Code to improve the way in which the system operator and other market operation service providers perform their roles. 19 Apr 2016
Switch re-engineering Outcome: Completed:
The purpose of this project is to fully review the switching process and address any outstanding switching issues following the implementation of Part 10 of the Code. We have completed our review of the switching process and addressed several outstanding switching issues resulting from the implementation of the new Part 10 of the Code. Amendments were made that came into force on 6 November 2014 and on 9 October 2015. 31 Oct 2015
Operational review of Part 6 Outcome: Completed:
The Authority is reviewing Part 6 because it is aware of some specific issues, and for reasons of general good regulatory practice. The review has considered all of Part 6 other than Schedule 6.4 (Pricing Principles), which the Authority is pursuing under a separate workstream. Amendments were made that came into force on 23 February 2015. 28 Feb 2015
Minor Code amendments Outcome: Completed:
From time to time we may make miscellaneous Code amendments outside projects in our work programme. We consulted on four proposed Code amendments intended to clarify certain operational obligations. We decided to complete three of these amendments, related to information being provided by the clearing manager and reconciliation manager. 13 Jun 2013